Eland Oil and Gas in its operational update on the Gbetiokun field in Nigeria revealed plans to speed up the Phase 1 of development and begin production by the end of this year.

According to the Chief Executive of Eland, George Maxwell, following the success of the Opuama-3 re-entry well on licence OML 40, the company and its partners intend to start production afterwards through an Early Production System (EPS) on the Gbetiokun field in H2 of 2016 as the well is suitable to carry on Eland’s strategy of cased hold work overs.

The company says it had boost its reserve estimates in two OML 40 reservoirs by 73% and 45% from the earlier evaluation of 25.87 and 12.77 Mmstb respectively.

The capex linked with the Phase 1 development, is valued by Eland at $14.5million which covers both the re-entry and facilities costs. Elcrest Exploration and Production Nigeria Ltd a joint-venture subsidiary of Eland holds 45% equity in the OML 40 license.

“We believe that we can commence production before the end of the year, with the competent Person’s Report predicting initial oil flow rates of 7,800 bopd on a gross basis. We are highly encouraged that NSAI (Netherland, Sewell and Associates) calculate a present worth net to Eland of almost $44 million for the first phase alone, from an investment of only $6.5 million. Alongside our recently announced competent persons report for the Ubima field, we believe we are well positioned to materially accelerate oil production and cash flows over the coming 12 months,” he told Energy-pedia.

Anita Fatunji