Eland Oil & Gas plc announced Friday that is aiming to raise approximately $15 million through a placing of its shares in order to fund operations at the Gbetiokun-1 well in Nigeria.
The net proceeds of the placing will be used to fund the re-entry, completion and production of the Gbetiokun-1 well, an existing discovery within the OML 40 license. The Gbetiokun field has been estimated by Netherland, Sewell & Associates Inc. to contain gross 2P Reserves of 10.8 million barrels of oil. The re-entry of Gbetiokun-1 is anticipated to cost $6.5 million net to Eland, with the company is targeting initial production in the second half of 2016.
Eland CEO George Maxwell commented in a company statement:
"We look forward to further enhancing production through the development of the Gbetiokun-1 workover well.
“The initial rate from the Gbetiokun-1 well is expected to be circa 7,800 barrels of oil per day gross. This project will once again almost double the company's already significant production profile.
“This fundraise will facilitate the development of this project in the second half of this year prior to the planned Ubima Early Production System."
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