25 Jul 2018 07:00
25th July 2018
Eland Oil & Gas PLC
("Eland" or the "Company")
Opuama-10 Update
Eland Oil & Gas PLC (AIM: ELA), an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, through its joint-venture subsidiary Elcrest Exploration and Production Nigeria Ltd ("Elcrest"), is pleased to announce the following update on the Opuama-10 well on Opuama Field, OML 40.
Opuama-10 has been drilled to a total true vertical depth of 8,121 feet, measured depth of 10,135 feet. The rig is currently cementing 9-5/8 casing which will complete today. The well encountered six oil-bearing reservoirs. Total net pay, in the six oil-bearing reservoirs, is 307 feet apparent vertical thickness.
The short string will be completed on the D1000 reservoir with 32 feet of perforation interval. The long string will be completed on the D5000 reservoir from 50 feet of perforation interval. Following completion, under the regulatory guidelines the Opuama production team will conduct a Maximum Efficient Test ("MER Test") incrementally testing the well at increasing choke sizes. It is expected that, following completion of the MER Test, initial gross production from Opuama-10 will be in line with previous guidance, at between 4,000 and 6,000 bopd (1,800 - 2,700 bopd net to Elcrest), with total production from Opuama field expected to reach 30,000 bopd (13,500 bopd net to Elcrest).
George Maxwell, CEO of Eland, commented:
"We are delighted with the significant amounts of net pay encountered by Opuama-10 and look forward to both another strong production performance following completion and testing and reaching our near-term target of producing 30,000 barrels of oil per day from Opuama field.
"The Company continues this exciting period through the second half of 2018 as our active drilling programme will increase production and generate significant revenues for Eland. We look forward to updating our stakeholders in due course."
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
James Stearns
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 a 45% interest in OML 40 which is 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 83.4 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