Eland Oil & Gas' Opuama producing 8,000 barrels a day from one wellStaff Writer | April 24, 2017
West Africa focused Eland Oil & Gas said said the Opuama field in Nigeria is producing 8,000 barrels of oil per day from its Opuama-3 well alone.
Oil exploration 6,000 gross barrels from the OML 40 licence
Monetisation of the oil is estimated to reach $8.5 million in the coming weeks.
Eland has completed its review of its reserves based lending facility and that has resulted in a borrowing based amount of $24.0 million, based on the production performance of wells Opuama-1 and Opuama-3, shipping export routes and the outlook.
Eland currently has a cash balance of $7.5 million, of which $800,000 is restricted to cover debt service.
Eland is expecting to start the side-track of the Opuama-7 well by the end of the first half of 2017, which will require $7.0 million of capital expenditure to complete.
The side-track is expected to produce 6,000 gross barrels of production from the OML 40 licence.
"The successful borrowing base review with our bank, Standard Chartered, ensures we are funded for our upcoming work programme at Opuama-7 which we expect to commence in the near term.
"We are targeting bringing Opuama field's gross production from Opuama-1,3 and 7 up to 17,500 barrels of oil a day by the early second-half of 2017," said Chief Executive Officer George Maxwell. ■