9 Nov 2017 07:00
9 November 2017
Eland Oil & Gas PLC
("Eland" or the "Company")
Opuama Work Programme Confirmed
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, in light of the extremely successful operation on OP7, the OML 40 joint-venture partnership has committed to the drilling of the Opuama-9 and Opuama-10 infill wells on Opuama field. Eland's joint-venture Company, Elcrest Exploration and Production Nigeria Ltd ("Elcrest"), has signed a rig contract with OES Energy Services Limited ("OES"), for the OES Teamwork Rig for this upcoming continuous drilling campaign.
Once drilling is complete at Opuama-8, the OES Teamwork Rig will mobilise to the Opuama-9 drill site and commence operations, expected in January 2018, before moving to the Opuama-10 drill site. Upon completion of drilling, Opuama-9 and Opuama-10 are expected to contribute initial production rates of 4,000 to 6,000 barrels of oil per day ("bopd") each. This increases the potential near term overall production from OML 40 to around an expected 30,000 bopd gross.
George Maxwell, CEO of Eland, commented:
"Completion of the Opuama infill drilling campaign has the potential to increase OML 40's gross production to over 30,000 barrels of oil per day in H1 2018. This is an over tenfold increase in reported production, taking place in under two and a half years. Securing the sustained drilling program for OML 40 will drive the Company forward to become one of the largest, by production volume, E&P Companies on AIM. With increasing production and an improving oil price, our netbacks from OML 40 will significantly drive our net cash generation.
There is strong momentum within the Company and with Elcrest's partner NPDC within the OML 40 joint-venture and we look forward to updating the market on the result of our Opuama drilling campaign as the infill drilling campaign progresses."
END
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 7 523 8000)
Henry Fitzgerald O'Connor / James Asensio
Panmure Gordon (UK) Limited (+44 (0)20 7 886 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 located 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, are as measured at the Opuama PD meter, are subject to reconciliation and will differ from sales volumes.
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.