Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors
Why invest in ELA?
Eland Oil & Gas PLC: THE INVESTMENT CASE

Eland Oil & Gas delivers for investors as it hits milestone

The hotly anticipated Opuama-7 well appears to have been a success and the company is now advancing plans to drill more new wells at the Opuama field
onshore drilling operation
INVESTMENT OVERVIEW: ELA The Big Picture
Opuama-7 will come online as a producer soon

Eland Oil & Gas PLC’s (LON:ELA)  patient investors are now seeing the company delivering on its production growth plans in Nigeria.

The company has reached an important and highly anticipated milestone with the completion of the side-track to the Opuama-7 well.

Production imminent

Opuama-7 will come online as a producer soon – the company’s guides that it is coming ‘imminently’ – and it is expected to add some 5,900 barrels of oil per day to Eland’s production profile.

Production presently amounts to around 12,000 barrels per day, coming from the Opuama-1 and Opuama-3 wells, and with the addition of the Opuama-7 side-track the company is building meaningful scale.

Following the recent ramp up, the company has now decided to accelerate its growth plans – with as many as three more wells now in the works. The Opuama-7 completion, the drill team will shortly move on to the Opuama-8 well site and two further wells may be drilled after that.

Opuama-8 site is expected to deliver between 5,000 and 7,000 of additional production, and as such represents another significant catalyst for Eland.

It means Eland is on-track to double output

George Maxwell, Eland CEO said in a statement that: “Together with our partner NPDC, the Company has tripled production form Opuama in the last 18 months and following a successful Opuama-7 and infill campaign is expected to double production again by the end of Q1 2018.” 

“We remain committed to developing OML 40 to its full potential and optimising our attractive acreage position in a capital efficient manner and look forward to the re-entry and completion of Gbetiokun-1 in 2018."

Current production and sales

Eland also told investors that existing production operations remain strong.

 It said that the field yielded some 12,000 bopd, coming from the Opuama-1 and Opuama-3 wells, in the period between July 1 and October 20.

Additionally, it noted that a 171,000 barrel crude lifting took place in September, with the oil sold at an average price of US$54.66 per barrel, generating US$9.3mln of revenue. The payment is due before the end of this month.

View full ELA profile View Profile

Eland Oil & Gas PLC Timeline

Related Articles

petsec-energy-Maki-Petkovski-CEO-presenting-Melb-Jan-2017-757.png
February 03 2017
Maki Petkovski discussed cash flow generating assets and Yemen.
offshore oil platform
September 21 2017
Hurricane is now on-track for 'first oil' in the first half of 2019
pic of VOG's gas facility
August 17 2017
La-107 had successfully reached its target depth of 3,180 metres

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use