11th Sep 2019 11:23
(Alliance News) - Nigeria-focused Eland Oil & Gas PLC on Wednesday reported record interim revenue, driven by an increase in production.
Eland posted revenue of USD106.0 million for the six months to June, 57% higher than a year before. Production from Eland's OML 40 asset was 9,948 barrels of oil per day on average, net to the firm, 29% up year-on-year.
Pretax profit dipped slightly, by 12%, to USD32.2 million, and Eland has held the interim dividend flat at 1 pence per share. Profit fell mainly due to a rise in finance costs.
"The diversification of production from our second oil field, Gbetiokun, represents a significant moment for the company as we generate material production and operational cash-flow," said Chief Executive George Maxwell.
"In the second half, we are excited to drill the high-impact, 78 million barrel, near-field Amobe prospect. The Amobe prospect represents the first pure exploration well in the company's history and the first on OML40 since 1991. We look forward to updating all stakeholders on these developments in the remainder of the year," Maxwell continued.
In a separate announcement on Wednesday, Eland said drilling as been completed at the Gbetiokun-4 development well. Analysis of log data has beaten expectations, the company said, finding "high-quality" oil-bearing reservoirs.
Eland expects to complete the well at the end of September, and then production will then start via an early production facility.
Maxwell said: "Following approval of the field development plan and start-up of the early production facility, both in July, we are pleased to have successfully drilled and logged the Gbetiokun-4 well. Log firmly indicates the pay zone came in well above expectations and therefore should significantly increase throughput on the Gbetiokun early production facility."
Shares were 4.0% higher on Wednesday morning in London at 130.05 pence each.
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