15th Jan 2019 13:25
LONDON (Alliance News) - Eland Oil & Gas PLC on Tuesday reported doubling in production for 2018, with 2019 output set to soar further.
In 2018, average production was 8,000 barrels of oil a day net to its Elcrest joint venture in Nigeria, from 3,934 barrels on average in 2017.
The 2018 exit production rate was 13,240 barrels of oil per day, with peak record production standing at 13,986 barrels of oil per day.
Looking forward, production net to Elcrest is guided between 14,000 barrels and 17,000 barrels of oil on average per day. Capital expenditure guidance is between USD80 million and USD90 million net to Elcrest.
There is an "active" work programme planned, targeting four new wells on the Opuama and Gbetiokun fields.
Chief Executive George Maxwell commented: "2018 was an exceptional operational year for Eland, with net production increasing some 60% from the start of the year to over 13,000 barrels of oil per day by the year end, a record for the company and for the OML 40 licence."
"This performance is a testament to the commitment of our exceptional staff and in-country partners, and I look forward to further operational success throughout 2019, which is shaping up to be a very busy period for the company."
"The sharply higher production rates throughout 2018 have led to a strengthening of our financial position and we commence this year with a largely unused new debt facility and a strongly cash generative business, ensuring we are fully-funded for the next phase of growth," he added.
Shares were 3.3% higher on Tuesday at a price of 124.50 pence each.
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