ABERDEEN-based Eland Oil & Gas has said it has taken a big step towards bringing a second field in Nigeria into production following a recent drilling success.
Aim market-listed Eland said an appraisal well on the Ubima field onshore had flowed at rates of up to 2,500 barrels oil per day (bopd), underlining the potential of the asset.
“The successful test of the deeper zone on the Ubima-1 well is a significant step towards the Company achieving a strategic target of a second producing asset,” said chief executive George Maxwell.
Eland noted that drilling operations on the Opuama field have also gone well, putting the company in line to increase total production from it to a record high of more than 30,000 bopd in the next month.
Mr Maxwell said the crossing of the 30,000 bopd threshold would confirm Eland’s position as one of the biggest oil producers on AIM.
The company could use the cash generated from production to invest in growth.
Eland expects the Opuama 10 well to produce at 5,500 bopd. Opuama 11 is expected to produce between 4,000 and 6,000 bopd.
Eland started production from Opuama in 2014. The field was shut in by Shell in 2006 amid security concerns.
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