30th Oct 2019 14:05
(Alliance News) - Eland Oil & Gas PLC on Wednesday cut its production guidance due to delays in completion of a well and permitting issues on another one.
Eland Oil shares were down 0.1% at 164.40 pence each in London in afternoon trade.
The Nigeria focused oil & gas explorer expects 2019 net production to be approximately 10,500 barrel of oil per day, down from previous guidance range of 12,000 to 13,500 bopd.
"Despite a successful intervention on the Opuama-9 short string during Q3, the extended drilling operations and current non-completion of Gbetiokun-4, the associated delay to the Gbetiokun-5 production well and the delayed start of the Ubima Extended Well Tested have a cumulative negative impact on the previous 2019 production guidance," Eland said.
Completion operations on the Gbetiokun-4 production well were suspended due to technical issues, the company said, adding that its joint venture subsidiary, Elcrest Exploration and Production Nigeria Ltd, has now moved to start spudding operations at the Gbetiokun-5 well, expected in the next two weeks.
Chief Executive George Maxwell said: "The challenges on Gbetiokun-4 highlight the complexities that can occur in the drilling and completion sequence. Over the past three years we have successfully overcome these types of equipment challenges during our ongoing drilling campaign and we are confident that when the required equipment arrives in country, we will move forward with the completion of Gbetiokun-4 and bring further production online as planned."
The company also said that the planned extended well test of the E1.0/E2.0 reservoirs in the Ubima-1 well has been delayed due to various permitting issues and that the well test is still expected in the final quarter of 2019, but likely not before mid-November.
By Tapan Panchal; [email protected]
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