Big Picture – A Deep Dive Examination of Eland Oil & Gas PLC
Eland Oil & Gas PLC Snapshot
We create value in two simple ways: we find oil and we sell oil. To achieve this we must execute exploration campaigns, deliver selective development projects, maintain our production and ensure we are suitably financed through a mix of diverse funding options and portfolio management.
Our business model addresses the fundamental areas that we develop to manage our risks and help us deliver our strategy. These areas include: ensuring sustainable operations by protecting our people; high standards of governance coupled with strong and effective risk management; a multidisciplined, diverse and entrepreneurial team; and making a positive and lasting contribution to the communities and environment in which we operate.
Our business model
The OML 40 licence lies within the Niger Delta approximately 75km northwest of Warri and covers an area of 498km2. The Company completed the acquisition of a 45% equity stake in OML 40, onshore Nigeria, in September 2012.
OML 40's booked reserves are found in Opuama in the western part of the licence, and Gbetiokun in the eastern part. Primary contingent resources lie in the Polobo and Abiala fields and there are numerous additional prospects and leads across the whole of the licence.
Production from Opuama oilfield in OML 40 restarted in February 2014 and the Company and its partners have since dedicated significant resources to growing this world-class asset base. Gross production from Opuama field achieved 25,000 bopd in July 2018.
The OML 40 area produces light oil with low gas to oil ratio (GOR) and has a very strong aquifer drive resulting in high ultimate recoveries.
OML 40 has gross 2P oil reserves of 83.4 mmbbls found in the Opuama and Gbetiokun fields. It has a significant, only partly developed reserve base with outstanding upside of 40.4mmbbls gross 2C resources, and 254.5 mmbbls of gross unrisked prospective resources*.
The environment in OML 40 consists of shoreline and coastal mangrove swamps. The region is lightly populated with indigenous groups living in dispersed riverine communities, mainly from the Ijaw and Itsekiri ethnic groups.
*As estimated by Netherland, Sewell & Associates Inc. as at 31 December 2017.
Production from the Opuama oilfield in OML 40 hit an all-time record production high of 25,000 barrels of oil per day (bopd) in July 2018
OML 40 was awarded to SPDC in 1962; the Opuama field was in production from 1975 until 2006 and during that period produced 43.4 mmbbls. In 2006, SPDC undertook a controlled shut down of OML 40, with Elcrest Exploration & Production Nigeria Limited subsequently purchasing a 45% interest in the OML 40 licence in September 2012.
The Opuama field was returned to production in February 2014 with the Opuama-1 well. Further infill wells were completed on Opuama-3, Opuama-7, Opuama-8 and Opuama-9 between April 2016 and April 2018.
Gbetiokun is located on the boundary of OML 40 and OML 49
Gbetiokun is located on the boundary of OML 40 and OML 49, which is operated by Chevron. The field is known as Gbetiokun in OML 40; the extension of the field in OML 49 is called Bime. The field was discovered by well Gbetiokun-1 in 1987 and presently four wells have been drilled on the structure (two in OML 40 and two in OML 49).
The latest appraisal well Gbetiokun 2 was drilled in August 1991 on the western flank of the field where it found a significant number of reservoirs containing hydrocarbons. NSAI provided a CPR for Gbetiokun-1 in April 2016 which has gross 2P reserves of 10.8 mmbbls. In 2017 NSAI provided a CPR for Gbetiokun field which has gross 2P reserves of 38.0 mmbbls.
OML 40: Exploration and Development Potential
In addition to Gbetiokun there are a further five undeveloped discoveries within OML 40, and over twenty prospects and leads are recognised.
The largest of these five undeveloped discoveries is thought to be Abiala while the largest prospect, which also carries a very low geological risk, is Amobe.
Ubima-1 represents Eland’s diversification towards production outside OML 40. Eland announced the commencement of the appraisal of Ubima field in July 2018
In July 2018 Eland announced the commencement of the appraisal of Ubima field
The Senior Management team sets our strategic objectives and has overall responsibility for Eland's risk management and internal control systems
Scotland, AB32 6FE
+44 1224 737 300
20 North Audley Street
+44 207 016 3180
Tiamiyu Savage Street
+234 1 631 0920