1 Aug 2019 07:00
1st August 2019
Eland Oil & Gas PLC
("Eland" or the "Company")
First Oil at Gbetiokun Early Production Facility
Eland Oil & Gas PLC (AIM:ELA), an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, is pleased to announce that first production from the Gbetiokun oilfield was achieved via the early production facility ("EPF") at licence OML 40.
Following mobilisation of the EPF to the Gbetiokun field and completion of all pre-commissioning checks throughout July, the field came onstream on 31 July 2019. In line with expectations, initial gross production will rise to approximately 12,000 barrels of oil per day ("bopd") (net: 5,400 bopd) from the Gbetiokun-1 and Gbetiokun-3 wells over the next seven days.
The EPF will process all reservoir fluids produced under the initial phase of the Gbetiokun development. The facility has a nominal capacity of 22,000 bopd, which will allow for production from the additional Gbetiokun development wells being drilled in 2019.
Evacuation of processed crude will be via shuttle tankers from Gbetiokun to the injection point on the main OML 40 export pipeline. The Gbetiokun facilities and process have been designed in a modular fashion, allowing for the evacuation of increased levels of production over the coming 12 to 18 months beyond 22,000 bopd, while the permanent export solution is progressed. Furthermore, this evacuation process allows the company to export via an alternative export terminal should its primary export route be hindered.
George Maxwell, CEO of Eland, commented:
"We are delighted to reach first oil from the Gbetiokun field. The team has worked hard, and I am proud we have delivered significant production from a second oil field within OML 40, marking a significant expansion and de-risking of our production base. Gbetiokun will deliver additional cash flow for Eland and we are excited for the development of the licence going forward, with the further infill drilling on Gbetiokun and Opuama and the near-field exploration of Amobe prospect in 2019."
For further information:
Eland Oil & Gas PLC (+44 (0)1224 737300)
www.elandoilandgas.com
George Maxwell, CEO
Ronald Bain, CFO
Finlay Thomson, IR
Peel Hunt LLP, Nominated Adviser & Joint Broker (+44 (0)20 7418 8900)
Richard Crichton
David McKeown
Stifel Nicolaus Europe Limited, Joint Broker (+44 (0)20 7710 7600)
Callum Stewart
Nicholas Rhodes
Ashton Clanfield
Camarco (+44 (0) 203 757 4980)
Billy Clegg
Tom Huddart
Monique Perks
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 a 45% interest in OML 40 which is in the Northwest Niger Delta approximately 75 km northwest of Warri and has an area of 498 km². 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 82.2 million barrels, gross 2C contingent resources of 50.7 million barrels and a best estimate of 252.1 million barrels of gross un-risked prospective resources*. The Ubima field holds gross 2P reserves of 9.3 million barrels of oil and gross 2C resource estimates of 4.2 million barrels*.
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 2018