Eland Oil & Gas PLC Opuama-7 Drilling and Crude Sales Update (9957Q)
September 18 2017 - 2:01AM
UK Regulatory
TIDMELA
RNS Number : 9957Q
Eland Oil & Gas PLC
18 September 2017
18 September 2017
Eland Oil & Gas PLC
("Eland" or the "Company")
Opuama-7 Drilling and Crude Sales Update
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 confirm that the OES Teamwork Rig
has been at the Opuama-7 wellsite for the past week. The drilling
team has since completed all preparatory work and the rig has now
commenced operations for the Opuama-7 sidetrack well. The operation
remains on track to complete the well in October.
In addition, Elcrest Exploration and Production Nigeria Ltd
("Elcrest"), has completed its August lifting of 153,000 barrels of
crude from Forcados Terminal. An average price of $51.44/bbl was
achieved with $7.9m in revenues with the cash received last
week.
Elcrest is expecting to complete a further lifting of 170,000
barrels from Forcados by early October 2017.
George Maxwell, CEO of Eland, commented:
"We are very pleased by the positive start to the Opuama-7
sidetrack operations and we look forward to the successful
completion with initial production forecast at 5,900 barrels of oil
a day commencing in October.
We are also very happy with the continued monetisation of OML
40's crude delivered to the Forcados terminal. The recent
noteworthy levels of production and record uptime are extremely
encouraging and ahead of our forecasts.
We look forward to Elcrest's liftings and revenues growing
further with the successful completion of the Opuama-7
sidetrack"
For further information:
Eland Oil & Gas PLC (+44 (0)1224 737300)
www.elandoilandgas.com
George Maxwell, CEO
Ronald Bain, CFO
Finlay Thomson, IR
Canaccord Genuity Limited (+44 (0)20 7523 8000)
Henry Fitzgerald O'Connor / James Asensio
Panmure Gordon (UK) Limited (+44 (0)20 7886 2500)
Adam James / Atholl Tweedie
Tom Salvesen
Camarco (+44 (0) 203 757 4980)
Billy Clegg / Georgia Edmonds / Tom Huddart
Notes to editors:
Eland Oil & Gas is an AIM-listed independent oil and gas
company focused on production and development in West Africa,
particularly the highly prolific Niger Delta region of Nigeria.
Through its joint venture company Elcrest, Eland's core asset is
OML 40 which is located in the Northwest Niger Delta approximately
75km northwest of Warri and has an area of 498km(2). In addition,
the Company has a 40% interest in the Ubima Field, onshore Niger
Delta, in the northern part of Rivers State.
The OML 40 licence holds gross 2P reserves of 83.2 mmbbls, gross
2C contingent resources of 41.2 mmbbls and a best estimate of 254.5
mmbbls of gross unrisked prospective resources. The Ubima field
holds gross 2P reserves of 2.4 mmbbls of oil and gross 2C resource
estimates of 31.1 mmbbl.
Net production figures relate to Elcrest Exploration and
Production Nigeria Ltd ("Elcrest"), 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.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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