Eland Oil & Gas PLC (AIM: ELA), an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, is pleased to announce that its joint-venture subsidiary Elcrest Exploration and Production Nigeria Ltd (“Elcrest”) has successfully drilled and completed the Opuama-8 well. The Opuama-8 well has been handed over to the Opuama field production team and the well will flow test into the production facilities and on to export.

Under the regulatory guidelines the Opuama production team will conduct a Maximum Efficient Test (“MER Test”) incrementally testing the well at increasing choke sizes. It is expected that, following completion of the MER Test, initial production from Opuama-8 will be in line with previous guidance, at between 5,000 and 7,000bopd (gross).

Furthermore, following the successful completion of Opuama-8 infill well, the OES Teamwork Rig was mobilised to the Opuama-9 drill site and has since spudded the Opuama-9 infill well. Drilling is expected to be completed in February, with first oil from Opuama-9 of between 4,000 and 6,000bopd (gross) expected in the first quarter of 2018.

The Opuama-9 well is intended to produce the D1000 reservoir, with possible secondary production targets in the D2000 and D5000 reservoirs. In addition, the well will determine if the shallow ‘C’ sands contain oil in a crestal location and will be deepened to appraise the E2000 reservoir.

Production performance from Opuama field is strong, with gross production from Opuama-1, -3 and -7 wells being approximately 18,000bopd.

George Maxwell, CEO of Eland, commented:

“We are pleased with the successful drilling and completion of the Opuama-8 well and we look forward to confirming stabilised production rates in due course. The success of Opuama-8 will result in increased production and cash generation from OML 40.

Our drilling programme will continue beyond Opuama-9, where our continued investment will further enhance both production and cash flow levels.”

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Source: Press Release