Eland Oil & Gas PLC (AIM: ELA), an oil and gas production and development company operating in West Africa with an initial focus on Nigeria, is pleased to announce that its joint venture company, Elcrest Exploration and Production Nigeria Ltd (“Elcrest”) has signed a rig contract with OES Energy Services Limited (“OES”), for the OES Teamwork Rig for the upcoming sidetrack of Opuama-7.
The side-tracking of the existing Opuama-7 well is expected to contribute an initial production rates of 5,900* barrels of oil per day (“bopd”) gross, increasing near term overall production from OML 40 to around an expected 17,500 bopd gross. The OES Teamwork swamp rig is currently undergoing meticulous preparation, which includes mobilising rig personnel, system tests and equipment shake down, to target the commencement of the rig move to Opuama-7 location in July 2017. The rig will drill a sidetrack to around 7,500 ft, expected to take in the region of a month to complete. As part of the contract’s terms, Elcrest has the option to extend the contract for the re-entry of Gbetiokun-1, which it intends to start immediately after Opuama-7 sidetrack.
George Maxwell, CEO of Eland, commented:
“Following the successful completion of our oversubscribed placing last week, I am delighted to announce the signing of a rig contract with OES to accelerate the commencement of our workover programme, starting with the side-track drilling of Opuama-7.
We are committed to developing OML 40 to its full potential and have immediately started to deploy the additional funds recently raised. We continue to target production from OP-7 and Gb-1 in H2 2017, targeting total gross production from OML40 of 25,400bopd (net: 11,430 bopd). This is double our current levels of production and should bring significant value to all our stakeholders.”
Source: Press Release