Eland Oil & Gas PLC Opuama-9 Update (3421R)
June 14 2018 - 1:00AM
UK Regulatory
TIDMELA
RNS Number : 3421R
Eland Oil & Gas PLC
14 June 2018
14 June 2018
Eland Oil & Gas PLC
("Eland" or the "Company")
Opuama-9 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 that its joint-venture
subsidiary Elcrest Exploration and Production Nigeria Ltd
("Elcrest") has successfully drilled and completed the Opuama-9
well. The production tree is currently being installed and Opuama-9
well is expected to be handed over to the Opuama field production
team in the coming week. The well will then flow test into the
production facilities and on to export.
Under the regulatory guidelines, the Opuama production team will
conduct a Maximum Efficient Rate Test ("MER Test") incrementally
testing the well at increasing choke sizes. It is expected that,
following completion of the MER Test, initial gross production from
Opuama-9 will be at the upper end of our guidance of between 4,000
and 6,000 barrels of oil per day ("bopd") (1,800 - 2,700 bopd net
to Elcrest). On completion of the MER test the Company will
announce the initial production rates.
Furthermore, following the successful completion of Opuama-9
infill well, the OES Teamwork Rig will mobilise to the Opuama-10
drill site with spudding expected in June. Initial gross production
is expected to be between 4,000 and 6,000bopd (1,800 - 2,700 bopd
net to Elcrest).
George Maxwell, CEO of Eland, commented:
"OP9 has been a challenging well but we are extremely pleased
that production is likely to be at the high side of our estimate
and simple well payback at current oil prices still predicted to be
sub 90 days. We will soon move to and spud OP10 and look forward to
a successful drilling program"
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
James Stearns
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
a 45% interest in OML 40 which is in the Northwest Niger Delta
approximately 75km northwest of Warri and has an area of 498km(2).
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.
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END
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