The AIM-listed firm said the FDP would cater for the drilling of five additional oil production wells in the first phase as well as six production wells and a single workover well in phase 2.
The group also announced that following upgrade works on its swamp drilling unit it had spudded the Gbetiokun-4 well on 12 July, which would then be completed as a dual string producer on the E3000 and E5000 reservoirs with an estimated initial production rate of between 3,000 and 5,000 barrels of oil per day.
George Maxwell, chief executive of Eland, said the group was “delighted” with the approval news and that the company would update shareholders on drilling progress at Gbetiokun “in the near future”.
In a note, analysts at Eland’s ‘house’ broker Peel Hunt said the FDP approval was “a very important regulatory requirement” and would allow further reinvestment which would in turn drive “substantial production growth” in the coming years.
Peel Hunt currently rates Eland at a ‘buy’ with a target price of 176p.
In early trading, the shares were up 1.9% at 125.6p.