Eland Oil & Gas PLC, an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, is pleased is pleased to announce the following update on the Opuama-10 and Opuama-11 wells in licence OML 40 and Ubima.
The Company, through its joint-venture subsidiary Elcrest Exploration and Production Nigeria Ltd ("Elcrest") has continued testing and production of the two reservoirs penetrated by the Opuama-10 well. The long string producing from the deepest of these reservoirs the D5000, flowed at 3,159 barrels of oil per day ("bopd") on a 40/64" choke with a flowing tubing head pressure ("FTHP") of 63 bar (914 psi) and the short string, producing from the D1000, flowed at 3,739 bopd on a 44/64" choke with a FTHP of 28 bar (406 psi). It is expected following completion of testing that stabilised initial production from Opuama-10 will be in excess of 5,500 bopd with aggregate production from the Opuama field expected to average above 29,000 bopd (13,050 bopd net to Elcrest).
Furthermore, the OES Teamwork Rig has drilled Opuama-11 to total true vertical depth of 7,914 feet and the final casing string has been run and cemented. The three target zones, D3500, D4000 and D2000 reservoirs recorded aggregated net pay of 185 feet of apparent vertical thickness. The D3500 and D4000 reservoirs will be perforated at this stage and a Maximum Efficiency Rate Test ("MER Test") incrementally testing the well at increasing choke sizes will be performed. Initial production from the test is expected in September. It is expected that initial gross production from Opuama-11 will be between 4,000 and 6,000 bopd (1,800 to 2,700 bopd net to Elcrest).
Well testing operations on Ubima are currently in progress on the D1000 reservoir to gather important information on oil characteristics and reservoir performance. To date, the F7000 reservoir was tested at flow rates of up to 2,500 bopd. Upon completion of the D1000 test, the potential to test the E1000/E2000 will be evaluated and the well will be completed with a dual completion with the KCA Deutag T-57 rig. The Company will update on the Ubima appraisal's progress further as operations continue.
George Maxwell, CEO of Eland, commented:
"We are delighted to announce the continued success of the Opuama drilling campaign with another well producing above expectation. Having achieved our previous production guidance, the addition of Opuama-11 production in the next month will take aggregate production from Opuama field above 30,000 bopd.
This will be a record production milestone for the Company and the OML 40 Joint Venture partners and will confirm our position as one of the biggest oil producers on AIM, ensuring sustainable cashflow for further development of our assets and the refinancing and upscaling of our debt line.
The successful test of the deeper zone on the Ubima-1 well is a significant step towards the Company achieving a strategic target of a second producing asset. I look forward to updating on the Ubima appraisal's progress further as operations continue."
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