Friday, November 25, 2016
Eland Oil & Gas saw the completion of testing on its Opuama-3 well in Nigeria on OML 40. The well was flow tested at several choke sizes to establish the maximum efficiency rate for production.
The Opuama-3 is a dual-completion well with the Long String accessing the D1000 reservoir and the Short String accessing the D2000 reservoir. The Long String tested at 5,955 bpd on a 48/64-inch choke and the Short String tested at 5,067 bpd on a 48/64-inch choke, giving a combined rate of about 11,000 bpd of crude. No water was produced from either string during the tests.
This Opuama-3 production rate, when combined with the production from Opuama-1, increases initial anticipated OML 40 gross output to around 14,500 bpd.
As previously announced, OML 40 has not been in production as a result of interruptions to third party export facilities. Despite all parties working towards a period of stable production, interruptions have continued. Eland said in light of this it will now accelerate plans for the implementation of crude export through shipping and continue working towards the development of an additional permanent alternative export solution.
Shipping the crude as an alternative to pipelines is a well established route to monetization in Nigeria and Eland’s plans are already well advanced for this option which is expected to commence by January.
The company is in discussion with its partner NPDC to accelerate work on a permanent alternative export solution in advance of the material increase in production that is expected from the side-tracking of Opuama-7 and the re-entry and completion of Gbetiokun-1. The company does not anticipate commencing these workovers until production can be regularize to the export terminals and the company will provide an update on timing of the work program following recommencement and stabilization of production from Opuama. However, it has alternative production options within our Ubima Field and will review opportunities to accelerate this development.
Although the Forcados terminal remains under force majeure, Elcrest Exploration and Production Nigeria Ltd, Eland’s JV company, completed a crude oil sale of 45,000 barrels from Forcados terminal in October. In addition to the production from the recent Opuama-3 well test of 33,900 barrels of oil, the 6,000 barrels of stored crude from the Opuama-3 production test in April 2016 has also been injected into the OML 40 export line for future liftings.