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Eland Oil & Gas pauses Nigeria drilling to address power issue

Eland said the performance at Opuama remains strong with gross output (from four wells) hit a company record of 23,164 barrels of oil per day this month
oil and gas operations
Two additional wells are expected to see Eland hit its production target

Eland Oil & Gas PLC (LON:ELA) has decided to pause drilling operations at the Opuama field, in Nigeria, as the programme continued to encounter intermittent power problems.

It is arranging for new back-up power engines to be delivered to site, though they aren’t expected until April. As a result, the company now expects to complete the Opuama-9 well programme in April, with the drilling of Opuama-10 due to follow immediately afterwards.

READ: Eland Oil & Gas delivers another step-up in Opuama field’s output

Updating on production operations, Eland said the performance at Opuama remains strong with gross output (from four wells) hit a company record of 23,164 barrels of oil per day this month - the two new wells are expected to add between 4,000 to 6,000 each.

Eland has a 30,000 bopd gross production target for the first half of this year.

"Although any delay is frustrating it is not unexpected during a multi-well drilling campaign,” said George Maxwell, Eland chief executive.

“I am very pleased with how our team and our partners have responded to the challenge and it should not mask the success of our ongoing drilling campaign which has increased gross production from 12,000 bopd to a record 23,164 boepd in under six months.”

A total of 1.42mln barrels of crude have been produced at Opuama for the year to date, amounting to 639,581 barrels net to Eland.

The company noted that some 498,622 barrels of crude has been lifted to the Forcados oil terminal, delivering some US$33.4mln (with the crude priced at US$67 per barrel). A further 100,000 barrels of crude is due to be sold in the next ten days.

“Through our increasing lifting volumes, all our stakeholders are starting to see the positive financial effects of our successful drilling campaign and resulting significant ramp-up in production," Maxwell added.

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