6th Jan 2014 08:53
LONDON (Alliance News) - Eland Oil & Gas PLC Monday said it has now completed the restoration work of the production facilities at the Opuama oil field in Nigeria.
The oil and gas development and exploration company operating in West Africa said it has now entered the pre-commissioning and testing phase, including the testing of the final section of the 12 inch export line of the Opuama oil field.
The facility had been shut down for seven years. The company had originally expected to complete restoration of the facility and export pipelines in October, but said the restoration work was taking place in a "challenging environment" and pushed the completion date back to the end of 2013.
Eland said it has been working with the field operator to replace corroded infield flowlines, refurbish the production flowstation and repair the oil export pipeline, replacing all corroded and damaged sections.
The company said it now expects the commencement of production shortly after the successful completion of pre-commissioning and testing.
Once the work is completed, it is hoping to start drilling an initial six development wells at the field. The company also is waiting for a rig currently being used by Conoil PLC, but said in October that it should get it early in 2014.
Eland also said in October that it expects to be producing in excess of 2,500 barrels of oil a day from two existing wells in the field by the end of the year. It then expects output to increase by about 3,000 barrels a day for each subsequent new well drilled during 2014.
Eland Oil & Gas shares were up 4.9% to 108.00 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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