25 Apr 2016 11:51
25 April 2016
Eland Oil & Gas PLC
("Eland" or the "Company")
Opuama-3 Workover Update
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, its joint-venture subsidiary Elcrest Exploration and Production Nigeria Ltd together with NPDC, its partner on OML 40, has completed the perforation of two new intervals in the Opuama-3 well and increased production from the two strings. Following the operational update on the Opuama-3 well re-entry announced on 14 April 2016 the following operation highlights have taken place on Opuama Field:
· Following the Production Logging Tool (PLT) runs in both strings of the Opuama 3 well the water ingress was identified to be coming from the lower D5000 producing interval. The D5000 reservoir was subsequently isolated by placing a cement plug across the interval with a coiled tubing intervention.
· Oriented perforations were shot into the D1000 upper reservoir in the Long String and into the D2000 reservoir in the Short String.
· Both strings were produced to a storage barge and flow rate tested.
· The Short String flowed for 6 hours on a 48/64" choke and produced 1,137 bbls of oil. This extrapolates to 4,548 barrels of dry crude per day.
· The Long String flowed for 1 hour on a 48/64" choke and produced 235 barrels of oil. This extrapolates to 5,640 barrels of dry crude per day.
· The successful cement job has removed over an estimated 1,000 barrels of water production from the well, significantly reducing the well's water cut.
· The combined flow from both strings was tested for 1 hour on 48/64" choke and produced 441 barrels of oil. This extrapolates to 10,584 barrels of dry crude per day from Opuama-3.
· Following the re-opening of the Forcados terminal, which we currently expect within a month, we then expect to recommence production from Opuama flowstation.
George Maxwell, CEO of Eland, commented:
"We are very pleased to announce the successful completion of the Opuama-3 re-entry and the strong results from flow testing the well. The results are beyond the high end of our previously announced expected range of 2,000-4,000 incremental gross barrels of oil produced per day. The two newly perforated reservoirs have proven to be highly productive. The initial combined flow rate from Opuama-3 well of 10,584 barrels of oil per day will move on normalised production, but will still be well in excess of our previous forecast.
Following this significant success we now move our focus to the Gbetiokun-1 workover well, also on licence OML 40. Our current plan is to commence operations on this high quality asset in the second half of the year, and we anticipate that a successful workover will lead to our current forecast of gross production in the range of 5,000-10,000 barrels of oil per day from the Gbetiokun-1 well"
For further information:
Eland Oil & Gas PLC (+44 (0)1224 737300)
www.elandoilandgas.com
George Maxwell, CEO
Louis Castro, CFO
Finlay Thomson, IR
Canaccord Genuity Limited (+44 (0)20 7 523 8000)
Henry Fitzgerald O'Connor
Nilesh Patel
In accordance with the guidelines of the AIM Market of the London Stock Exchange, John Downey, a geologist and Eland's Chief Technical Officer, who has a BSc from Nottingham University, an MSc from Leeds University and has over 30 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.