10th Jan 2019 12:31
LONDON (Alliance News) - Eland Oil & Gas PLC on Thursday said drilling phase of the Gbetiokun-3 well at the Gbetiokun oil field in Nigeria is now complete.
Drilling of the Gbetiokun-3 appraisal well was completed and found "oil-bearing reservoirs across multiple horizons".
The well is to be completed as a dual producer on two oil reservoirs, D9000 and E4000. Another target reservoir, E7000, was found to be slightly deeper than expected and is now being reassessed as a target for future wells.
Downhole samples were also collected from the D5000 reservoir, which showed that the shallow reservoir oil is mobile. A pressure volume temperature analysis will be performed to determine whether D5000 can be developed commercially.
Eland said that the Gbetiokun-3 well is expected to complete in January and that it plans to use an early production system to test the Gbetiokun-1 and Gbetiokun-3 wells. Initial estimated gross production from both wells its expected to be around 15,000 barrels of oil per day
Of the 15,000 barrels, 6,750 of these will be net to Eland via its joint venture subsidiary Elcrest Exploration & Production Nigeria Ltd.
Eland Chief Executive George Maxwell said Gbetiokun "has the potential to deliver a significant increase in oil production" from the OML 40 licence, in which Eland holds a 45% interest.
"We look forward to updating shareholders on flow testing later this quarter," Maxwell said.
Shares in Eland were up 3.5% at 120.00 pence on Thursday.
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