logo-loader
viewEland Oil & Gas PLC

Eland rises as it receives approval for Gbetiokun field development plan

The AIM-listed oiler also said that following upgrade works to its swamp drilling unit it had spudded the Gbetiokun-4 well on 12 July

Approval
The FDP will allow the drilling of five additional oil production wells

Eland Oil & Gas PLC (LON:ELA) shares were higher on Monday after it received approval for a field development plan (FDP) for the Gbetiokun field in the Niger Delta.

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.

READ: Eland Oil & Gas completes remedial work on Gbetiokun well ahead of ‘early production’

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.

Quick facts: Eland Oil & Gas PLC

Price: 164.6 GBX

AIM:ELA
Market: AIM
Market Cap: £354.98 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

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...

In exchange for publishing services rendered by the Company on behalf of Eland Oil & Gas PLC named herein, including the promotion by the Company of Eland Oil & Gas PLC in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Investor Update: Woodford's troubled equity income fund to be shut down

Headlines from the Proactive UK newsroom. Neil Woodford's troubled equity income fund is to be wound up as part of a fire sale -- its adviser Link Fund Solutions has announced. Investors have not been able to make withdrawals since early June due to its problems. Nigeria-focused oil group...

on 15/10/19

RNS

Form 8.3 - Eland Oil Gas plc

1 day, 19 hours ago

Form 8.3 - Eland Oil & Gas plc

1 day, 22 hours ago

Form 8.3 - Eland Oil & Gas PLC

1 day, 22 hours ago

Form 8.3 - Eland Oil & Gas plc

2 days, 2 hours ago

Form 8.5 (EPT/RI)

2 days, 5 hours ago

Form 8.3 - Eland Oil Gas plc

2 days, 6 hours ago

Form 8.3 - Eland Oil & Gas plc

2 days, 22 hours ago

2 min read