5th Feb 2014 09:33
LONDON (Alliance News) - Eland Oil & Gas PLC Wednesday said it has started oil production from the Opuama oil field located on the OML 40 license, onshore Nigeria.
Opuama, operated by the Nigerian Petroleum Development Corporation, was in production between 1975 and 2006.
Nigerian Petroleum Development Corporation holds a 55% interest in OML 40, while the remaining 45% interest is owned by Eland's joint venture company, Elcrest Exploration and production Nigeria Ltd
The firm said following successful testing and commissioning of the field facilities, oil production from Opuama started on Tuesday.
Production has recommenced through the successful re-commissioning of existing infrastructure and the re-opening of two existing wells.
Eland said gross output from these two wells is expected to stabilise at an aggregate of around 2,500 barrels of oil per day.
The crude oil produced will be delivered to the Shell Forcados expert terminal via its recently recommissioned flowstation and export pipelines, with a capacity to export up to 30,000 barrels a day.
The stock was trading at 103.10 pence Wednesday morning, up 6.10 pence or 6.3%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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