UK-listed Eland Oil & Gas is planning to soon kick off its drilling programme in Nigeria for the year targeting a further increase in production after last year’s output doubled.

The West Africa-focused player reported an average production in 2018 of 8000 barrels of oil per day, more than double the 2017 average production of 3934 bpd.

The boost was due to Eland’s active development period, which saw seven wells drilled, re-entered and completed on the Opuama, Gbetiokun and Ubima fields, located on the OML 40 licence in Nigeria’s Niger Delta.

This year the company expects production to average between 14,000 and 17,000 bpd, amid a work programme targeting four new wells across Opuama and Gbetiokun.

In a first step towards increasing production, Eland anticipates undertaking a well intervention on Opuama-7 in the first quarter, a workover on Opuama-1 in the third quarter, after which two further Opuama production wells, OP-12 and OP-13, will be drilled in the fourth quarter.

On the Gbetiokun field, Eland intends to further increase production by drilling two additional development wells, Gbetiokun-4 and Gbetiokun-5.

A fifth new well is planned for the Amobe exploration prospect, which will be the company’s first pure exploration well. It is expected to spud in the end of the second quarter also on the OML 40 licence.

In addition, commercial production from the Ubima field is expected in the first half of the year, which will help further increase production.

Capital expenditure for 2019 has been set between $80 million and $90 million, Eland said.

George Maxwell, chief executive said: “ (Last year) was an exceptional operational year for Eland, with net production increasing some 60% from the start of the year to over 13,000 bpd by the year end, a record for the company and for the OML 40 licence.

“Moreover, the Ubima field tested at combined rates of up to 1400 bpd net to Eland and this is expected to enter commercial production in the first half of 2019. Gbetiokun will also provide a step-change in production as we forecast over 6700 bpd net to the company following commencement of the extended well test in the first quarter of 2019,” Maxwell said.

Online

Eland boosts Nigeria drilling plans