Eland Oil & Gas PLC Commencement of Ubima Appraisal (2348W)
31 July 2018 - 4:01PM
UK Regulatory
TIDMELA
RNS Number : 2348W
Eland Oil & Gas PLC
31 July 2018
31 July 2018
Eland Oil & Gas PLC
("Eland" or the "Company")
Commencement of Ubima Appraisal
Eland Oil & Gas PLC (AIM: ELA), an oil & gas production
and development company operating in West Africa with an initial
focus on Nigeria, through its subsidiary Wester Ord Oil & Gas
Nigeria Limited, partnered with All Grace Energy Limited, is
delighted to confirm that the appraisal of Ubima field has
commenced with the Deutag T-57 land rig re-entering the Ubima-1
well which has been suspended since discovery by SPDC in 1963. The
Company has a 40% equity interest in the Ubima field.
A dual string completion is planned for Ubima-1 on four
different reservoirs, namely on the D1000 (at 4,908 feet subsea
("ftss")), E1000/E2000 (at 6,778 ftss) and F7000 (at 9,244 ftss).
The programme includes two Drill Stem Tests (DST's) on the E1000/
E2000 and D1000 prior to running the dual completion with the
objective to obtain accurate fluid, pressure and production data
for each separate reservoir. Thereafter extended production testing
is planned, which will serve as a solid basis for the full field
development plan of the Ubima field.
A CPR published in April 2016 by AGR TRACS ascribes gross 2P
reserves of 2.4 million barrels of oil to the Ubima-1 well. On a
full field development basis, the CPR carries gross contingent
resources of 20.6 million barrels (1C), 31.1 million barrels (2C)
and 66.0 million barrels (3C).
Ubima-1 represents Eland's diversification of production outside
OML 40. It opens a new operational leg in Rivers State, Nigeria,
with ultimately different export routes than those from the Opuama
field. The Company expects that upon successful appraisal the Ubima
partnership will convert a significant amount of contingent
resources into recoverable reserves.
George Maxwell, CEO of Eland, commented:
"We are delighted to re-enter Ubima-1 and commence completion
and testing operations. As we look to geographically diversify our
production base, Ubima is an exciting project for Eland and this is
the first step in the appraisal of the field ahead of commencing
full field development as early as possible. Following the
appraisal of Ubima-1, we look forward to updating all stakeholders
on the progress of this exciting asset."
For further information:
Eland Oil & Gas PLC (+44 (0)1224 737300)
www.elandoilandgas.com
George Maxwell, CEO
Ronald Bain, CFO
Finlay Thomson, IR
Canaccord Genuity Limited (+44 (0)20 7523 8000)
Henry Fitzgerald O'Connor / James Asensio
Panmure Gordon (UK) Limited (+44 (0)20 7886 2500)
Adam James / Atholl Tweedie
James Stearns
Camarco (+44 (0) 203 757 4980)
Billy Clegg / Georgia Edmonds / Tom Huddart
In accordance with the guidelines of the AIM Market of the
London Stock Exchange, Gilles Krijger, MSc of Delft University,
with 40 years of experience in the oil and gas sector, is a
Reservoir Engineer and member of the Society of Petroleum Engineers
who meets the criteria of qualified persons under the AIM guidance
note for mining and oil and gas companies, has reviewed and
approved the technical information contained in this
announcement.
Notes to editors:
Eland Oil & Gas is an AIM-listed independent oil and gas
company focused on production and development in West Africa,
particularly the highly prolific Niger Delta region of Nigeria.
Through its joint venture company Elcrest, Eland's core asset is
a 45% interest in OML 40 which is in the Northwest Niger Delta
approximately 75km northwest of Warri and has an area of
498km(2).
In addition, the Company has a 40% interest in the Ubima Field,
onshore Niger Delta, in the northern part of Rivers State.
The OML 40 licence holds gross 2P reserves of 83.4 mmbbls, gross
2C contingent resources of 40.4 mmbbls and a best estimate of 254.5
mmbbls of gross un-risked prospective resources*
The Ubima field holds gross 2P reserves of 2.4 mmbbls of oil and
gross 2C resource estimates of 31.1 mmbbl**
Net production figures relate to Elcrest Exploration and
Production Nigeria Ltd ("Elcrest"), Eland's joint venture company.
Production rates, when oil is exported via Forcados, are as
measured at the Opuama PD meter, are subject to reconciliation and
will differ from sales volumes.
*Netherland, Sewell & Associates Inc CPR report 31 December
2017
**AGR TRACS April 2016
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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