21 Dec 2017 14:24
21 December 2017
Eland Oil & Gas PLC
("Eland" or the "Company")
Opuama-8 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-8 infill well on Opuama Field, OML 40.
Opuama-8 has been drilled to a total true vertical depth of 8,071 feet and the final casing string has been run and cemented.
The well encountered seven oil-bearing reservoirs, including the C2000 reservoir, the first time that oil has been encountered in a shallow 'C' reservoir. Total net pay, in the seven oil-bearing reservoirs, is approximately 160 feet apparent vertical thickness. The next planned Opuama infill well, Opuama-9, will test the four 'C' reservoirs in a crestal location.
The three target zones, D3500, D4000 and D5000 reservoirs, will be perforated and a long-term production test carried out on the D5000 and D3500 reservoirs. Initial production from the test is expected in January.
The expected initial production rate remains in line with previous guidance of between 5,000 and 7,000bopd (gross).
George Maxwell, CEO of Eland, commented:
"Together with our partner NPDC, we are pleased with the progress on the Opuama-8 well, which will further increase Opuama production and cash generation. Having confirmed oil in the C2000 reservoir, considerably de-risks our testing of the C reservoirs planned on Opuama-9, the next well to be drilling in January. Although the primary production target for Opuama-9 remains the D1000 reservoir."
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 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.
*Netherland, Sewell & Associates Inc CPR report 31 June 2015
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.