Eland Produces 330,000 Barrels Since Production Restart At OML 40

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Eland Oil & Gas said that following recommencement of production in January, OML 40 in Nigeria had now produced over 330,000 barrels of oil, from the Opuama-3 well only.

It said: “Following choking back of Opuama-3 for testing and reservoir optimisation average production for full producing days since recommencement of production has been approximately 8,000 bopd.

“To this date over 160,000 barrels of oil have been delivered to the export terminal with approximately a further 160,000 barrels ready for imminent injection.

“The company has monetised 154,173 barrels of crude at an average price of $52.14 per barrel, with cash receipts of over $8 million. The Company expects to monetise the next 160,000 barrels in the coming weeks.”

Eland said production was temporarily halted to allow maintenance on the FPSO.

It said the Company, having already produced 330,000 barrels, had used this opportunity to review the performance of the shipping operation.

It said modifications of the mooring system had since been implemented to cater for the tides and increased volumes being delivered to the storage tanker.

The company said it expected to resume production by the end of next week.

It added: “The Company is planning to commence the workover and side-track of Opuama-7 by the end of H1 2017, which we anticipate will initially add an additional 6,000 bopd to OML 40 production.

“We also expect to commence the workover of Gbetiokun-1 in H2 2017, which we expect will deliver at least a further 7,800 bopd to production. Furthermore, the company expects to begin development of the Ubima early production system at the end of the Nigerian wet season in September and upon completion of road and wellsite preparation.”

Chief executive George Maxwell said: “The achievement of getting 120m ocean going oil tankers to run a continuous cycle through the Nigerian river system should not be underestimated and whilst we will continue to implement operational efficiency we could not be more delighted and excited with the way it has begun.

“The success of establishing an alternative export route has considerably de-risked our crude monetisation and has ensured that we will never again have lengthy production downtime that resulted from a single route to market.

“2017 brings huge opportunity for us to significantly increase production, capitalising on our earlier success from the re-entry programmes, prior to new drilling opportunities.”