Eland Oil & Gas PLC Rig contract signed for the drilling of Ubima-1 (4506O)
May 17 2018 - 7:09AM
UK Regulatory
TIDMELA
RNS Number : 4506O
Eland Oil & Gas PLC
17 May 2018
17 May 2018
Eland Oil & Gas PLC
("Eland" or the "Company")
Rig contract signed for the drilling of Ubima-1
Eland Oil & Gas PLC (AIM: ELA), an oil and gas production
and development company operating in West Africa with an initial
focus on Nigeria, is pleased to announce that it has signed a rig
contract with KCA Deutag for the T-57 land rig to workover the
Ubima-1 well. Ubima-1 is located on the Ubima Field, onshore Niger
Delta in the Northern part of Rivers State, in which Eland has a
40% interest.
The Deutag T-57 land-rig is currently being mobilised and
prepared and is expected on site in early June. We therefore expect
to re-enter Ubima-1 before the end of June. The Ubima-1 re-entry
well is the first to be worked on in the licence by Eland and its
partner. A dual string completion is planned for the well, which
will target oil within four reservoirs, namely the D1000, E1000,
E2000 and F7000.
A CPR published in April 2016 by AGR TRACS ascribes gross 2P
reserves of 2.4 million barrels of oil to the Ubima-1. On a full
field development (FFD) basis, the CPR carries contingent resources
of 20.6 million barrels (1C), 31.1 million barrels (2C) and 66.0
million barrels (3C). Success with the well test will lead us into
the FFD phase where we will be targeting this material upside.
George Maxwell, CEO of Eland, commented:
"This is a very exciting milestone for the Company. Not only do
we have ground breaking activity in Ubima, with the first rig
activity in decades, but we are also moving to a multiple rig
operation for Eland. The underlines the importance of
diversification of our production base. The Ubima-1 re-entry will
be completed in four reservoirs, appraising the field in advance of
full field development and moving the material volumes of
Contingent Resources into Reserves."
END
For further information:
Eland Oil & Gas PLC (+44 (0)1224 737300)
www.elandoilandgas.com
George Maxwell, CEO
Ronald Bain, CFO
Finlay Thomson, IR
Canaccord Genuity Limited (+44 (0)20 7523 8000)
Henry Fitzgerald O'Connor / James Asensio
Panmure Gordon (UK) Limited (+44 (0)20 7886 2500)
Adam James / Atholl Tweedie
Tom Salvesen
Camarco (+44 (0) 203 757 4980)
Billy Clegg / Georgia Edmonds / Tom Huddart
In accordance with the guidelines of the AIM Market of the
London Stock Exchange, Pieter van der Groen, a geologist and
Eland's Chief Operating Officer, who has a geology degree from
Auckland University, a Masters degree in Petroleum Geology from the
University of Aberdeen and has over 25 years of relevant experience
in the upstream oil and gas industry and who is a member of the
Society of Petroleum Engineers and meets the criteria of qualified
person under the AIM guidance note for mining and oil and gas
companies, has reviewed and approved the technical information
contained in this announcement.
Notes to editors:
Eland Oil & Gas is an AIM-listed independent oil and gas
company focused on production and development in West Africa,
particularly the highly prolific Niger Delta region of Nigeria.
Through its joint venture company Elcrest, Eland's core asset is
OML 40 which is in the Northwest Niger Delta approximately 75km
northwest of Warri and has an area of 498km(2). In addition, the
Company has a 40% interest in the Ubima Field, onshore Niger Delta,
in the northern part of Rivers State.
The OML 40 licence holds gross 2P reserves of 83.4 mmbbls, gross
2C contingent resources of 40.4 mmbbls and a best estimate of 254.5
mmbbls of gross unrisked prospective resources.* The Ubima field
holds gross 2P reserves of 2.4 mmbbls of oil and gross 2C resource
estimates of 31.1 mmbbl.**
Net production figures relate to Elcrest Exploration and
Production Nigeria Ltd ("Elcrest"), Eland's joint venture company.
Production rates, when oil is exported via Forcados, are as
measured at the Opuama PD meter, are subject to reconciliation and
will differ from sales volumes.
*Netherland, Sewell & Associates Inc CPR report 31 December
2017
**AGR TRACS April 2016
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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