Production Begins at Opuama Field, Onshore Nigeria

Eland said that, following successful testing and commissioning of the field facilities, oil production from the Opuama field started on February 4. Production has recommenced through the successful re-commissioning of existing infrastructure and the re-opening of two existing wells, the firm added.

Gross output from the two wells is expected to stabilize at around 2,500 barrels of oil per day. The crude oil produced will be delivered to the Shell Forcados export terminal via the recently re-commissioned flow station and export pipeline, with a capacity to export up to 30,000 barrels per day.

Opuama is operated by the Nigerian Petroleum Development Corporation (NPDC). The field, which has estimated gross recoverable 2P reserves of 54.2 million barrels, was in production between 1975 and 2006 before a controlled shut down of the facilities took place.

Eland CEO Les Blair commented in a company statement:

"The commencement of production on OML 40 has been much anticipated by management and investors alike, and indeed by all stakeholders. It is a testament to the dedication and hard work of all stakeholders in OML 40 and is a hugely significant milestone for Eland.

"We look forward enthusiastically to the prospect of building on this pivotal turning point by materially increasing the daily production through the planned development drilling during 2014."
NPDC holds a 55-percent interest in OML 40. The remaining 45-percent is owned by Eland's joint venture company, Elcrest Exploration and Production Nigeria Ltd.

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