Elcrest E&P Sign Rig Deal for Opuama-7 Side-track
Eland Oil & Gas says its subsidiary, Elcrest Exploration and Production, has signed a rig contract with OES Energy Services to secure a rig for a new drilling programme at the Opuama field in OML 40 in Nigeria.
This is coming after Eland last week announced plans to raise up to $19.5 million to increase production from the OML 40 licence by three-fold.
The rig will drill the side-track of Opuama-7 well expected to add initial production rates of 5,900 bopd and increase the short-term entire production from OML 40 to 17, 500 bopd. The side-track will be drilled to around 7,500ft
According to the Chief Executive Officer Eland Oil, George Maxwell, “Following the successful completion of our oversubscribed placing last week, I am delighted to announce the signing of a rig contract with OES to accelerate the commencement of our work over programme, starting with the side-track drilling of Opuama-7.We are committed to developing OML 40 to its full potential and have immediately started to deploy the additional funds recently raised. We will continue to target production from OP-7 and Gb-1 in H2 2017, targeting total gross production from OML40 of 25,400bopd (net: 11,430 bopd). This is to double our current levels of production and should bring significant value to all our stakeholders.”
Drilling work is expected to commence next month and will last for about a month. Under the contract, Elcrest has the option to extend the deal for the re-entry of Gbetiokun-1 which the company plans to start after the completion of the Opuama-7 drilling.