Eland Oil & Gas Plc on Wednesday revealed that it has concluded the re-evaluation of the Ubima field, inside OML 17 in Nigeria.

According to the company, the re-evaluation has increased hopes that production can commence by the end of 2016 by means of an Early Production System.

Eland’s 40% owned Ubima field has been estimated to contain about 2.42mln barrels of proved and probable oil reserves which is valued at $25.49mln. These reserves have to do with areas of Ubima that might be part of the early production system.

The principal aim of the early production operation is to begin production at a lesser cost, as well as to gather key information that can be used to perfect the plans for full field development.

Eland’s overall portion of reserves is at 1.13mln bbls, valueed at $10.48mln net, while its contingent resources totals 13.08mln bbls, worth $57mln.

“It is particularly encouraging that AGR TRACS classify oil associated with the early production system as reserves in contrast to the previous contingent resources classification. We are confident that a successful EPS later this year would move us quickly to a full field development, which will deliver material value for Eland and its Partner, Allgrace Energy,” George Maxwell, Eland chief executive told Proactive Investors.

He added that the current development work at the OML 40 asset is progressing rapidly and flow test results for the Opuama-3 are is expected soon.

“With plans to increase Eland production from Opuama-3, Gbetiokun-1 and Ubima in the near term; attractive timeframes for returns on investment, even at these lower oil prices; and an operating environment that is increasingly favorable, we look forward to the coming months with significant confidence,” he added.

Anita Fatunji