11th May 2015 07:57
LONDON (Alliance News) - Eland Oil and Gas PLC Monday said its joint venture company has been approved to jointly operate the OML 40 license in Nigeria after fulfilling all the necessary obligations.
Eland said its joint venture company, Elcrest Exploration and Production Nigeria Ltd, has received confirmation from the Department of Petroleum Resources that it has fulfilled its obligations to become the co-operator of the license, after paying USD2.3 million in requisite premiums and fees to the government department.
Elcrest will now co-operate the license for a minimum of 10 years, and the department has advised the Nigerian National Petroleum Corp, the other operator, to finalise the joint operator model agreement with Elcrest for the license.
The joint operating model agreement has been fully drafted and is currently under review by all parties. Signing of the agreement is expected in the coming weeks, Eland Oil said.
The OML 40 license currently has one producing oil field, Opuama, which is achieving over 3,500 barrels of oil per day. Eland, through Elcrest, holds a 45% stake in the license.
"We are delighted to have received consent from the Ministry of Petroleum Resources for Elcrest's appointment as operator of OML 40. It only remains to complete a revised joint operating agreement between Elcrest and Nigerian National Petroleum Corp when a further announcement will be made," said Eland Chief Executive George Maxwell.
Eland shares were up 7.0% on Monday morning to 65.25 pence.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Eland Oil & Gas