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Eland Oil & Gas set for Nigerian tax boost

Last updated: 18:01 13 Mar 2014 AEDT, First published: 19:01 13 Mar 2014 AEDT

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Nigeria focussed Eland Oil & Gas (LON:ELA) is set to benefit from a significant reduction in tax rates.

Eland’s 45% owned joint venture company, Elcrest Exploration and Production, has been in discussions with the relevant government departments in Nigeria about its tax status, and it says good progress has been made.

“Elcrest expects to benefit from a significant reduction in underlying tax rates. The company will provide further detail when appropriate,” Eland said in a statement.

Last month, Eland joined the producing ranks with the hotly anticipated start up at the Opuama field, within the OML40 licence.

At that time, two wells were in operation and production is expected to stabilise at 2,500 barrels of oil per day. The Opuama facilities currently have the capacity to export up to 30,000 barrels a day.

With production now established the company’s focus will shift to increasing daily production volumes.

Eland’s AIM quoted shares advanced more than 5% in early deals, to trade at 124p each.

Zak Mir: Eland Oil & Gas can rise to 85p

Oil producer Eland Oil & Gas PLC (LON:ELA)  has been on a slow recovery trend and could rise to 85p, the top of the channel, over the next 3-4 months believes technical analyst Zak Mir.

on 2/6/17