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 completed the Opuama-10 well and will be handing over to the Opuama field production team imminently.
Under the regulatory guidelines the Opuama production team will conduct a Maximum Efficient Rate Test (“MER Test”), testing the well at increasing choke sizes, following which the Company will update the market further when full testing is complete, and production is stabilised. Initial production from Opuama-10 is expected to be in line with previous guidance, at between 4,000 and 6,000 barrels of oil per day (“bopd”) (1,800 to 2,700 bopd net to Elcrest), with total production from Opuama field expected to be in the range of 28,000 to 30,000 bopd (12,600 to 13,500 bopd net to Elcrest).
As previously announced by the Company on 25 July 2018, Opuama-10 encountered six oil-bearing reservoirs with 307 feet apparent vertical thickness, with the Opuama-10 well completed on two of these reservoirs, namely D1000 and D5000. Following a review by the OML 40 Joint Venture between Elcrest and the Nigerian Petroleum Development Company Ltd (“NPDC”), a decision has been made to accelerate the drilling of the Opuama-11 well with the target of developing incremental reserves from the intermediate zones not targeted by Opuama-10.
Following handover of Opuama-10 to the production team, the JV will move the OES Teamwork rig to Opuama-11, where it is intended to develop the D3500, D4000 and D2000 reservoirs. The Opuama-10 well recorded net pay in these three reservoirs of 168 feet apparent vertical thickness. It is expected that initial gross production from Opuama-11 will be between 4,000 and 6,000 bopd (1,800 to 2,700 bopd net to Elcrest).
Following Opuama-11 and completion of regulatory approvals, the rig will be moved to the Gbetiokun field, where it will re-enter well Gbetiokun-1 and drill well Gbetiokun-3 as part of the initial phase of the field development plan. Dredging operations have already commenced and are currently 50% complete. Dredging will be completed in time for rig mobilisation to Gbetiokun.
George Maxwell, CEO of Eland, commented:
“We are delighted that the recent successful infill drilling on Opuama field has led to the confirmation of a further near-term production well. The successful delivery of Opuama-11 will not only advance us past our previous production target of 30,000 barrels of oil per day but will also maximise near-term cashflows.
The upside on OML 40 remains significant and together with Elcrest’s partner NPDC we look forward to continuing the previously-announced work programme on the licence, including the Early Production System and Full Field Development of Gbetiokun field and exploration drilling of Amobe Prospect.
I look forward to positively updating the market on operations in due course.”