13 Feb 2018 07:00
13 February 2018
Eland Oil & Gas PLC
("Eland" or the "Company")
Opuama 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, is pleased to announce the following update on the Opuama-8 and Opuama-9 wells in licence OML 40.
Opuama-8 initial gross production on a 40/64" choke has been recorded at over 6,200 bbls of oil per day (bopd) and at the upper half of the Company's previously expected production range. Production performance from Opuama field is strong, with gross production from all four wells being circa 22,000 bopd.
Testing and production of the three reservoirs penetrated by well Opuama-8 continues. The deepest of the reservoirs tested, the D5000, flowed at 3,250 bopd on a 40/64" choke with a flowing tubing head pressure (FTHP) of 50 bar (725 psi) while the shallowest tested, the D3500, flowed at 2,980 bopd on a 40/64" choke with a FTHP of 47 bar (680 psi). Testing of the third reservoir, the D4000, will commence shortly. The test rates are encouraging and within expectation.
The drilling of the Opuama-9 infill well by the OES Teamwork Rig continues, although there have been some delays due to mechanical issues with the Rig. The 16" hole has been drilled to a depth of 3,348 ft and the 13 3/8" casing has since been run. The rig has begun to drill the 12 ¼" hole with current depth 6,016 ft to a targeted Total Vertical Depth (TVD) of 9,033 ft. Completion and Production from Opuama-9 is expected within Q1.
George Maxwell, CEO of Eland, commented:
"We are delighted to announce a further significant increase in Opuama production from the successful completion and test of the Opuama-8 infill well. Adding the incremental flow rates from this highly productive well has once again pushed Opuama field to the highest recorded levels in its history.
Our focus on the Opuama-9 infill well and the near-term work programme continues and I look forward positively to updating the market further as Elcrest, together with our partner NPDC, achieve more success on the OML 40 license which is becoming one of the largest producing assets of any E&P company on AIM."
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.