31 Jan 2017 07:00
31 January 2017
Eland Oil & Gas PLC
("Eland" or the "Company")
Recommencement of Production
Eland Oil & Gas PLC (AIM: ELA), an oil & gas development and exploration company operating in West Africa with an initial focus on Nigeria, is pleased to announce that it has finalised the implementation of crude export from Opuama Field through shipping. Production has restarted into the main storage vessel and the shuttle vessel will shortly arrive on site with transport of the crude commencing thereafter.
The Company is initially producing from the Opuama-3 well only, which produced a gross volume of c.10,000 barrels of oil over the 24-hour period between 4pm 29 January and 4pm yesterday, 30 January.
Although the Company will initially produce from Opuama-3, the system has the capacity to handle greater quantities of production as other wells are brought online.
George Maxwell, CEO of Eland, commented:
"The diversification of our export routes has been a key priority for the Company to ensure we are protected in the event of further disruption to our onshore export route. I am delighted that we have finalised the process for the shipping of our crude and that production from Opuama has recommenced.
The work over the last two months to provide an alternative monetisation opportunity has required an innovative engineering and contracting approach by our staff, which is now delivering value for this effort and I look forward to updating the market in greater detail over the coming weeks"
-ENDS-
For further information:
Eland Oil & Gas PLC (+44 (0)1224 737300)
www.elandoilandgas.com
George Maxwell, CEO
Olivier Serra, CFO
Finlay Thomson, IR
Canaccord Genuity Limited (+44 (0)20 7 523 8000)
Henry Fitzgerald O'Connor
Nilesh Patel
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
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 mmbbl of oil and gross 2C resource estimates of 31.1 mmbbl.