18 Apr 2018 07:00
18 April 2018
Eland Oil & Gas PLC
("Eland" or the "Company")
Opuama-9 Operations Update
Eland Oil & Gas PLC (AIM: ELA), an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, announces the following operations update on the Opuama-9 infill well in licence OML 40.
Further to the Company's announcement on 21 March 2018, the back-up engines required to recommence drilling on Opuama-9 have arrived at site on a tender assist barge, hooked up to the rig system and are fully functional. We next continue drilling the 12 ¼" hole to the pay zones. After cementing the 9 5/8" casing, the well will be deepened to evaluate the E2000 reservoir. Total vertical depth of the well remains approximately 9,000 feet and we anticipate reaching this by the end of April, with production commencing once the well has been completed, tested and tied back to the existing production facilities. Opuama-9 is expected to provide another significant boost to production of 4,000 to 6,000 bopd (1,800 to 2,700 net to Elcrest).
The Opuama-9 well is intended to produce the D1000 reservoir, with possible secondary production targets in the D2000 and D5000 reservoirs. In addition, the well will test the shallow 'C' sands as they could contain oil in this crestal location and will be deepened to appraise the E2000 reservoir. Following the completion of drilling activities on Opuama-9, the OES Teamwork Rig will move immediately to the Opuama-10 well location.
George Maxwell, CEO of Eland, commented:
"It is encouraging to see progress on the Opuama-9 well following the mechanical issues experienced with the engines on the rig. We now anticipate quick progress to completing the well and hooking it up as another producer on the field. Thereafter drilling operations on Opuama-10 will commence."
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 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
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.