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Eland Oil & Gas unearths significant oil pay in Opuama-10 well

Published: 16:26 25 Jul 2018 AEST

oil and gas operations
The well is expected to take field production to 30,000 bopd

Eland Oil & Gas PLC (LON:ELA) told investors that the Opuama-10 well, the latest at the Opuama field in Nigeria, has unearthed significant oil pay.

The well was drilled down to a depth of 8,121 feet and encountered six oil bearing reservoirs with some 307 feet of total net pay.

A dual completion will see the company open up the D1000 reservoir perforating a 32 feet interval along with the D5000 reservoir which will be an interval of 50 feet.

READ: Eland Oil & Gas highlights Opuama production growth

The company expects the well’s production will be in line with its forecast, between 4,000 and 6,000 barrels of oil per day, which would result in field output reaching 30,000 bopd. It would mean that Eland’s Elcrest joint venture subsidiary would see 1,800 to 2,700 bopd from Opuama-10 and around 13,500 bopd from the field.

"We are delighted with the significant amounts of net pay encountered by Opuama-10 and look forward to both another strong production performance following completion and testing and reaching our near-term target of producing 30,000 barrels of oil per day from Opuama field,” said George Maxwell, Eland chief executive.

 "The company continues this exciting period through the second half of 2018 as our active drilling programme will increase production and generate significant revenues for Eland.

“We look forward to updating our stakeholders in due course."

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