1 Sep 2017 07:00
01 September 2017
Eland Oil & Gas PLC
("Eland" or the "Company")
Mobilisation of Rig to the Opuama Field
Over 1 Million Barrels of Crude Oil Gross Produced from OML 40 in last 3 months.
Less than 1% downtime.
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 confirm that the OES Teamwork Rig has been mobilised to the Opuama Field, OML 40, in preparation to perform the sidetrack of Opuama-7 well.
Following mobilisation of the rig, drilling at Opuama-7 is expected to commence by around mid-September and is forecast to begin production in October. Upon completion of drilling, initial production from Opuama-7 is expected to be 5,900 bopd (2,655 bopd net*) taking total production at OML 40 to over 18,000bopd (8,100bopd net*).
Since 1 June 2017, there have been 3 months of production from OML 40, at an average rate for producing days of over 11,750bopd (5,287bopd net*). More than 1,080,000 barrels of oil (486,000 net*) have been produced into the Forcados terminal in this 3-month period, with only 0.95% downtime for maintenance during this time. Current gross production from Opuama is around 12,500bopd.
Further revenue receipts from export through shipping of $3.5million have been received and settlement of $3.8million to a shipping contractor has also been completed by Elcrest. Final amounts due to Elcrest and to shipping related contractors are expected to be concluded within the next month.
George Maxwell, CEO of Eland, commented:
"We are delighted to have mobilised the OES Teamwork Rig to Opuama-7 and following our successful placing we are fully funded for the drilling of the well. Opuama-7 alone is expected to increase current average production by nearly 50% taking total production to around 18,000bopd. Elcrest's maiden use of a swamp drilling rig shows how far the Company has come since inception and is a significant advancement and achievement for all involved in the Company.
"The consistent and significant levels of uptime and production seen from Opuama field will continue to improve cashflows and allow us to further add value for all stakeholders and fund the development of our world class asset base in the Niger Delta."
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 Mann / Tom Huddart
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 located in the Northwest Niger Delta approximately 75km northwest of Warri and has an area of 498km². 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 83.2 mmbbls, gross 2C contingent resources of 41.2 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.
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.