6 Dec 2018 07:00
06 December 2018
Eland Oil & Gas PLC
("Eland" or the "Company")
Ubima Appraisal Update
Eland Oil & Gas PLC (AIM: ELA), an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, through its subsidiary Wester Ord Oil & Gas Nigeria Limited, partnered with All Grace Energy Limited, is pleased to announce the initial results of its testing of the Ubima-1 well after a dual completion was installed on the E1000/E2000 and F7000 reservoirs.
Further to the RNS of 18 September 2018, in which the Company announced that the F7000 reservoir was tested at flow rates of up to 2,500 barrels of oil per day ("bopd") on a 24/60" choke, testing of the E1000/E2000 reservoirs, produced by the Ubima-1 well, has continued. The E1000/ E2000 reservoirs flowed at 900 to 1000 barrels of oil per day ("bopd") on a 28/64" choke with a flowing tubing head pressure ("FTHP") of 22 bar (315 psi). Due to storage limitations, the well test was suspended prior to acquiring representative fluid samples.
The Company is now actively working with its partner to further evaluate the field by means of an extended well-test ("EWT") in early 2019. EWT production is planned to be monetised through third party infrastructure. The Company will update the market in due course as the EWT development progresses.
George Maxwell, CEO of Eland, commented:
"We are delighted with the initial test results at the Ubima-1 well and the flows from the E1000/E2000 reservoirs. These results highlight a significant step forward in the Company's diversification of its production base. The Company will now focus on monetisation opportunities for production from this well as we seek to generate material cash flows for our shareholders. I look forward to updating the market on further progress as operations continue."
For further information:
Eland Oil & Gas PLC (+44 (0)1224 737300)
www.elandoilandgas.com
George Maxwell, CEO
Ronald Bain, CFO
Finlay Thomson, IR
Peel Hunt LLP, Nominated Adviser & Joint Broker (+44 (0)20 7418 8900)
Richard Crichton
David McKeown
Stifel Nicolaus Europe Limited, Joint Broker (+44 (0)20 7710 7600)
Callum Stewart
Nicholas Rhodes
Ashton Clanfield
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, Yannis Korakakis, MSc of Leoben University, with 32 years of experience in the oil and gas sector, is a Petroleum Engineer and member of the Society of Petroleum Engineers who meets the criteria of qualified persons 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 a 45% interest in 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 un-risked 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