Eland Oil & Gas sees progress on its Nigerian oil operations

Eland Oil & Gas PLC (AIM: ELA), an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, is pleased to announce the following operations update.

Opuama

Drilling operations have been completed, with the Opuama-11 well being handed over to the Opuama field production team. The Company, through its joint-venture subsidiary Elcrest Exploration and Production Nigeria Ltd (“Elcrest”) is now flow testing the well into the production facilities and on to export. The long string producing from the deepest of these reservoirs the D4000, flowed at 1,610 barrels of oil per day (“bopd”) on a 24/64″ choke with a flowing tubing head pressure (“FTHP”) of 100bar (1450 psi) and the short string, producing from the D3500, flowed at 2,453 bopd on a 28/64″ choke with a FTHP of 42 bar (609 psi). It is expected following completion of testing that stabilised initial production from Opuama-11 will be between 4,000 – 6,000 bopd (1,800 – 2,700 bopd net to Elcrest), in-line with previous guidance.

As previously announced, the Opuama-7 sidetrack well has experienced increased water-cut from the current D2000 completion. A production log was run in order to confirm water containment options ahead of a future planned re-completion on the D1000 reservoir, the well’s primary target.

Aggregate production from the Opuama field is currently 26,325bopd (11,846 bopd net to Elcrest). Following completion of Opuama-11 testing, aggregate production from the Opuama field is expected to be approximately 30,000 bopd (13,500 bopd net to Elcrest).

Gbetiokun

Upon completion of Opuama-11 drilling operations, the OES Teamwork Rig mobilised to the Gbetiokun field where it will re-enter the Gbetiokun-1 well and drill the Gbetiokun-3 well as part of the initial phase of the field development.

The Gbetiokun field will be brought on stream through an early production system (“EPS”). The Gbetiokun EPS will receive production from the existing Gbetiokun-1 well, which will be completed to produce from the E2000 and E6000 reservoirs, as well as the planned Gbetiokun-3 infill well, which will produce from the D9000 and E7000 reservoirs. Initial production through the Gbetiokun EPS is estimated to be approximately 15,000 bopd.

The Gbetiokun field is located in the south-east of OML 40. It was discovered in 1987 and was appraised by three wells in 1990 and 1991. It is a simple, un-faulted, three-way dip closed structure and contains twenty oil-bearing reservoirs at depths between 5,000 and 10,000 feet.

The reserves certifier (NSAI) assesses gross reserves at 21.5 MMstb (1P) – 38 MMstb (2P) – 53.8 MMstb (3P).

Ubima

Workover operations on the Ubima-1 well have now been completed and the rig has been demobilised. Further to the RNS of 18 September 2018, in which the Company announced that the F7000 reservoir was tested at flow rates of up to 2,500 barrels of oil per day (“bopd”) on a 24/60″ choke, testing operations on the D1000 reservoir at 4,908 feet subsea have now been completed. During the test, sand production prohibited flow to surface, but an oil sample with about 15 API gravity was recovered. The Company will now evaluate options for the further appraisal and potential development of the D1000 sands.

A dual completion has been installed and a production test will be carried out on the E1000 / E2000 reservoirs to further assess volumes and productivity. Initial results from the production test are expected in the coming weeks and the Company will update the market once these results are evaluated.

George Maxwell, CEO of Eland, commented:

“We are pleased with what is expected to be another highly successful infill well on the Opuama field and we look forward to further record field production levels once testing has been completed. At current oil prices, these record levels of production from Opuama field are leading to significant cashflows for all of OML 40’s stakeholders.

The prolific nature of OML 40 combined with the Company’s experienced and resourceful team and supportive stakeholders means that we move development operations swiftly to the Gbetiokun field and the opportunity to increase production by a further 50% in the near-term.

Furthermore, the conversion of Ubima-1 into a producing well following the initial workover is a milestone for the Company and following the test of the E1000 and E2000 reservoirs we shall begin to evaluate monetisation opportunities for production from this well. Further evaluation of the D1000 sands are required to consider options for any full field development and we will update the market as we progress these studies.

We look forward to updating the market on the progress of both the Gbetiokun Early Production System and the evaluation of Ubima.”

Source: Eland Oil & Gas

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