Updates on Opuama Oilfield Production

Eland Oil & Gas PLC (AIM: ELA), an oil and gas production and development company operating in West Africa with an initial focus on Nigeria, is pleased to announce that Elcrest Exploration and Production Nigeria Ltd, Eland’s joint venture company, has now completed its export of crude through shipping and has now commenced the transportation to its pre-existing export facility.

Production continues from Opuama-3 well at circa. 8,500bopd gross (Net to Elcrest: 3,825bopd) and anticipates production start-up from Opuama-1 in due course.

Highlights of Opuama Oilfield

Type: Oil reserve
Production: 10,000 bopd (early 2017)
Discovered: 1972
Gross 2P: 57.4 mmbbl
Location: 92km NW of Warri 
Reservoir Depth: 7,600–8,900ft

History of Opuama Oilfield

• OML 40 was awarded to SPDC in 1962.
• The Opuama field was in production from 1975 until 2006 and during that period produced 43.4 mmbbl.
• In 2006, SPDC undertook a controlled shut down of OML 40.
• In September 2012 Elcrest Exploration & Production Nigeria Limited purchased a 45% interest in the OML 40 licence.
• The Opuama field was returned to production in February 2014.

The reservoirs contain light crudes with API gravities ranging from 47.5° in the shallow reservoirs to 37.8° in the deep and saturated reservoirs. There has been very little pressure depletion over the 30 plus years of production, which indicates a strong aquifer support and consequently leading to very high total ultimate oil recoveries.

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Output on Opuama Oilfield

Oil can be exported by two routes: (i) via the Shell-operated Trans Escravos Pipeline network running from the Opuama field south along the coastline to the Forcados Oil Terminal, (ii) via shipping to an offshore FPSO

• Following the successful production test on Opuama-3 in November 2016 production recommenced in early 2017 via barging.
• We are currently planning a workover on Opuama-7 in H1-2017 and then an infill development drilling programme on the Opuama field.