Eland Oil & Gas Announce Operations and Corporate Update

Eland Oil & Gas Announce Operations and Corporate Update

Eland Oil & Gas PLC (AIM:ELA), the oil and gas production, development and exploration company operating in West Africa with a principal focus on Nigeria, is pleased to provide the following operations and corporate update.

Highlights

  1. Opuama-5 wellhead and christmas tree maintenance activities have been successfully completed. The well has been reperforated, with the perforation interval increased to 24ft. Swabbing operations have been completed and oil flowed into swab barge.
    Opuama-5 is now being hooked-up to the Opuama flow station facilities and the Company will update on initial flow rates in due course. All indications are positive for the well to achieve gross production of between 400-600 bopd.
  1. Opuama field recorded average production uptime of 81% for the first half of 2015. Production from OML 40 was halted for 14% of the first half of 2015 due to planned maintenance of the Trans Escravos Pipeline network by SPDC and a further 5% of the period due to industrial action at NNPC and NPDC.
  1. Current Opuama Field average gross production over 2,750 bopd (1,238 bopd net to Elcrest Exploration and Production Nigeria Ltd (“Elcrest”), Eland’s joint venture company) based on production days.
  1. There have been 8 liftings in the period from 1January to the end of July, of a cumulative 201,771 barrels sold at an average price of $59.43 per barrel. Elcrest’s next lifting is expected to take place in August and is due to be a cargo of circa. 27,000 bbls of crude.
  1. Cash balance of $13.1million as of 30 June 2015, with a further $2.1 million received in July from settlement of June’s oil cargoes. $10 million was drawn under the $35 million committed Reserve Base Lending facility (“RBL”) as at 30 June 2015.
  1. Syndication for the remaining $40 million of the RBL continues. The Company has received expressions of interest for values in excess of the amount being raised and discussions are now centred around loan pricing and other engagement conditions.

Source: Eland Oil & Gas PLC

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