AIM-listed Eland Oil & Gas has confirmed that the OES Teamwork Righas been mobilised to the Opuama Field, OML 40, in preparation to perform the sidetrack of the Opuama-7 well.
Following mobilisation of the rig, drilling at Opuama-7 is expected to commence by around mid-September and is forecast to begin production in October. Upon completion of drilling, initial production from Opuama-7 is expected to be 5,900 bopd (2,655 bopd net*) taking total production at OML 40 to over 18,000bopd (8,100bopd net*).
Since 1 June 2017, there have been 3 months of production from OML 40, at an average rate for producing days of over 11,750bopd (5,287bopd net*). More than 1,080,000 barrels of oil (486,000 net*) have been produced into the Forcados terminal in this 3-month period, with only 0.95% downtime for maintenance during this time. Current gross production from Opuama is around 12,500bopd.
Further revenue receipts from export through shipping of $3.5million have been received and settlement of $3.8million to a shipping contractor has also been completed by Elcrest. Final amounts due to Elcrest and to shipping related contractors are expected to be concluded within the next month.
George Maxwell, CEO of Eland commented saying ‘We are delighted to have mobilised the OES Teamwork Rig to Opuama-7 and following our successful placing we are fully funded for the drilling of the well. Opuama-7 alone is expected to increase current average production by nearly 50% taking total production to around 18,000bopd. Elcrest’s maiden use of a swamp drilling rig shows how far the Company has come since inception and is a significant advancement and achievement for all involved in the Company.
‘The consistent and significant levels of uptime and production seen from Opuama field will continue to improve cashflows and allow us to further add value for all stakeholders and fund the development of our world class asset base in the Niger Delta.’
* Net production figures relate to Elcrest Exploration and Production Nigeria, Eland’s joint venture company. Production rates, when oil is exported via Forcados, are as measured at the Opuama PD meter, are subject to reconciliation and will differ from sales volumes.