Petroleum Africa
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Tuesday, July 25, 2017
The first half of 2017 has been good to Eland Oil & Gas with its activities in Nigeria on OML 40 progressing at a good clip. The company started the year with a restart of production that is exported via ship to a FPSO. That mode of export continued until May 24 when exports by pipeline to the Forcados oil terminal recommenced.
Since export via Forcados resumed, there have been over 56 days of production, at an average rate for producing days of over 11,400 bpd gross which is 5,130 bpd net to the company. Eland confirmed that this is the highest level of production since 1977 on OML 40. More than 600,000 barrels of oil were produced in this period into the Forcados terminal since May 24, with only 5.3% downtime for maintenance during the period.
The company also received an updated Competent Persons Report (CPR) for four wells in OML 40 in June 2017. The CPR trebled the estimate of gross 2P reserves that will be produced by these wells to 33 MMstb oil.
Eland remains fully funded for the near-term work program commencing with the sidetrack of existing well Opuama-7 in August which is forecast to increase gross production by 5,900 bpd (2,655 bpd net), increasing near-term production from OML 40 to about 17,500 bpd gross (7,875 bpd net).
George Maxwell, CEO of Eland, commented, “I am pleased to report that the first six months of 2017 have been incredibly successful and busy period for the company with record high production levels achieved, an oversubscribed placing raising $19.5million and the creation of diversification of our export routes.
“As we enter the second half of 2017, we are fully funded for the drilling of Opuama-7 and the additional well we have the option for under the rig contract, with Opuama-7 alone due to increase current production by 50% this quarter. We intend to use the resulting increase in cashflows to fund the further development of our asset base in the Niger Delta and I am hugely excited by the momentum currently being created within the business.”
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