Eland anticipating 'record' output at Opuama as rig moves to new field

A new in-fill well at Eland Oil & Gas’ OML 40 licence in Nigeria will lift output from the Opuama field to a new record, the company said on Friday.

The field is currently producing 26,325 gross barrels of oil per day (bopd) and the new Opuama-11 will increase this to approximately 30,000 bopd or 13,500 bopd net to Elcrest, Eland’s joint venture at the OML licence.

George Maxwell, chief executive of Eland, said: "We are pleased with what is expected to be another highly successful infill well on the Opuama field and we look forward to further record field production levels once testing has been completed. At current oil prices, these record levels of production from Opuama field are leading to significant cashflows for all of OML 40's stakeholders."

Once works have been completed at Opuama -11, the rig will move to the Gbetiokun field to re-enter the Gbetiokun-1 well and drill the Gbetiokun-3 well as part of the initial phase of the field’s development.

The field, which is expected to eventually increase production by 50%, will initially be brought on stream through an early production system, which is estimated to see initial production of approximately 15,000 bopd.

Meanwhile at the Ubima prospect, in which Eland holds a 40% stake, a production test is being carried out on the E1000 and E2000 reservoirs following the successful workover of the Ubima-1 well.

"The conversion of Ubima-1 into a producing well following the initial workover is a milestone for the company and following the test of the E1000 and E2000 reservoirs we shall begin to evaluate monetisation opportunities for production from this well. Further evaluation of the D1000 sands are required to consider options for any full field development," said Maxwell.

Eland’s shares were down 0.10% at 96.90p at 1041 BST.