Eland on Track to Drill More Wells Onshore Nigeria
Nigeria-focused junior producer Eland Oil & Gas reported Wednesday that it remains on track to start development drilling on its Opuama field during the third quarter of this year.
The Opuama field is currently producing 3,100 barrels of oil per day, including 1,395 bopd that goes to Eland's joint venture company Elcrest Exploration and Production Nigeria.
In 3Q 2015, Eland plans to start a drilling programme that will consist of seven wells. The firm said that these wells are "commercially robust" at an oil price of $50 per barrel.
Eland CEO George Maxwell commented in a company statement:
"We are incredibly pleased that we have begun this year so strongly, with very high consistency of production from Opuama. Our operational focus has given us this success and provides a consistent revenue stream and the basis for the company to deliver its 2015 work program.
"We do however continue with our cost reduction program to reduce operating expenses as far as possible and maximize the return on our capex investment.
"The planned work program, with the mixture of re-entry and new development wells, will result in 2015 being a transformational year for Eland with material increases in production and revenues."
Eland also said it had a cash balance of $8.2 million as at March 1 and is expected to receive a further $2.4 million before the end of March for settlement of oil cargoes.
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