ABERDEEN-based Eland Oil & Gas has achieved record production in Nigeria following a strong performance by its latest well in the country.
The Alternative Investment Market-listed company said it has been producing 7,000 barrels oil per day (bopd) from the Opuama-9 well on its acreage in the country.
That compared with guidance of 4,000 – 6,000 bopd.
The company said the Opuama field is currently producing at around 25,000 bopd, an all-time record for the OML 40 licence.
Eland has a 45 per cent stake in OML 40. It is currently drilling the Opuama 10 well.
Chief executive George Maxwell said successful completion of the well would put Eland well within reach of its stated target of delivering 30,000 bopd from Opuama.
He said Eland is confident about the prospects for the second half with further drilling expected to increase production on OML 40 and appraisal work planned on the Ubima field.The company expects to refinance and increase its current debt line.
Eland lost around $40 million in total in the last two financial years after production from Opuama was disrupted. The firm had to suspend production from Opuama in February 2016 because the Forcados terminal used to handle output was shut down due to sabotage.
The Shell-operated terminal reopened in May last year, leading to a big improvement in Eland’s trading performance. The firm made $13.6m profit after tax in the second half of last year.
Shares in Eland Oil & Gas closed up 2.5p at 124p.
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