17 May 2018 12:09
17 May 2018
Eland Oil & Gas PLC
("Eland" or the "Company")
Rig contract signed for the drilling of Ubima-1
Eland Oil & Gas PLC (AIM: ELA), an oil and gas production and development company operating in West Africa with an initial focus on Nigeria, is pleased to announce that it has signed a rig contract with KCA Deutag for the T-57 land rig to workover the Ubima-1 well. Ubima-1 is located on the Ubima Field, onshore Niger Delta in the Northern part of Rivers State, in which Eland has a 40% interest.
The Deutag T-57 land-rig is currently being mobilised and prepared and is expected on site in early June. We therefore expect to re-enter Ubima-1 before the end of June. The Ubima-1 re-entry well is the first to be worked on in the licence by Eland and its partner. A dual string completion is planned for the well, which will target oil within four reservoirs, namely the D1000, E1000, E2000 and F7000.
A CPR published in April 2016 by AGR TRACS ascribes gross 2P reserves of 2.4 million barrels of oil to the Ubima-1. On a full field development (FFD) basis, the CPR carries contingent resources of 20.6 million barrels (1C), 31.1 million barrels (2C) and 66.0 million barrels (3C). Success with the well test will lead us into the FFD phase where we will be targeting this material upside.
George Maxwell, CEO of Eland, commented:
"This is a very exciting milestone for the Company. Not only do we have ground breaking activity in Ubima, with the first rig activity in decades, but we are also moving to a multiple rig operation for Eland. The underlines the importance of diversification of our production base. The Ubima-1 re-entry will be completed in four reservoirs, appraising the field in advance of full field development and moving the material volumes of Contingent Resources into Reserves."
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 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 83.4 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.