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Thursday, March 12, 2015
Eland Oil &Gas is seeing gross average production rates from its Opuama Field on OML 40 of over 3,100 bpd, this is 1,395 bpd net to Elcrest Exploration and Production Nigeria Ltd., Eland’s JV company.
The OML 40 JV achieved a facility and export pipeline uptimeof 100% for January and February 2015. Production was shutdown in January 2015 for planned maintenance of the Trans Escravos Pipeline network by SPDC. Consequently, current Q1 average Opuama field uptime is over 85%.
Eland said that well re-entry and workover opportunities have been evaluated and are included in its 2015 work program. The first of these will be the re-entry of well OPUA-005, which is currently shut-in. The well is expected to have the potential to produce between 400 and 600 bpd and is expected to produce a total of 1.1 to 1.3 million barrels over the life of the well prior to a planned conversion to a water injector. Mobilization for initial operations is planned for April, with the completion of the workover expected during May.
The dredging work on OML 40 has been completed and an updated hydrographic survey has been carried out. This has identified a number of high spots to be swept and this is planned for Q2 prior to any rig mobilization.
The company said the side-track of the OPUA-007, currently shut in, will be the second well re-entry. Reentering this well requires abandoning the existing down-hole completion and drilling a horizontal side-track to further drain the D2000 reservoir interval. As the side-track requires the use of a drilling rig, it is envisaged that the workover will be carried out as part of the Opuama development drilling campaign, which is expected to begin in Q3.
The Opuama development drilling program is comprised of seven wells with contingent, follow-on, drilling activity through 2016. These seven wells will be drilled from a single surface location with the first two scheduled for Q3 and Q4. The first two wells in this programwill produce from the D1000 and D2000 reservoirs and will appraise a number of deeper reservoirs. Subsequent wells in the program will produce from the deeper D5000 and E2000 reservoirs, in addition to the D1000 and D2000.
On the financial end for Eland, all conditions precedent for the committed $35 million of the $75 million Reserve Based Lending facility with Standard Chartered Bank have been met and the bank will complete the registration of its security over the coming days. Marketing for the syndication of the remaining $40 million has already begun and completed commitments are now expected by end-April 2015. This timeframe matches the company’s planned work program with drilling due to commence in Q3 2015.
George Maxwell, CEO of Eland Oil & Gas commented,“We are incredibly pleased that we have begun this year so strongly, with very high consistency of production from Opuama. Our operational focus has given us this success and provides a consistent revenue stream and the basis for the Company to deliver its 2015 work program.
“We do however continue with our cost reduction program to reduce operating expenses as far as possible and maximize the return on our capex investment.The planned work program, with the mixture of re-entry and new development wells, will result in 2015 being a transformational year for Eland with material increases in production and revenues.”
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