4th Jul 2018 11:37
LONDON (Alliance News) - Eland Oil & Gas PLC on Wednesday expressed confidence towards the second half after production at Opuama-9 well, located in Nigeria, came in beyond the upper end of management's guidance.
The exploration company said its Opuama-9 well was completed at the end of June with the short string producing from the D1000 reservoir and the long string from the D2000 reservoir.
Following the maximum efficiency rate test, interim production stood at 3,200 barrels of oil per day at short string and 3,800 barrels at long string.
Eland noted that the combined total production of 7,000 barrels exceeded the upper end of its previous estimates, which were in the range of 4,000 to 6,000 barrels.
Meanwhile, at Opuama-10, the company spudded the well at a depth of 3,599 feet. It intends to proceed drilling to 10,200 feet to reach primary targets in D1000 and D5000 reservoirs and secondary targets in the D3500 and D4000 reservoirs.
Eland expects production from Opuama-10 well to total between 4,000 and 6,000 barrels of oil daily.
Overall, the Opuama fields are currently producing a record 25,000 barrels of oil per day, including both strings from Opuama-9. Upon completion of Opuama-10 well, the company expects total oil production to increase to 30,000 barrels daily.
At Opuama-7 well, the company has seen an increased water-cut leading to remedial action to rectify this. A re-entry of Opuama-7 is expected to take place during the coming month, Eland said.
"The completion of Opuama-9, delivering production significantly above our original forecast, contributes to the continued success of the current drilling campaign," said Chief Executive George Maxwell. "We look confidently towards the second half of 2018."
Shares in Eland were trading 3.6% higher at 125.90 pence each on Wednesday.
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