West-Africa-focused Eland Oil and Gas on Wednesday announced that it has completely tested the Opuama-3 well, which was worked over in April this year and intends to fast-track plans to reduce the usage of pipelines for its Nigerian crude exports.

According to the company, the well has been flow tested at several choke sizes to create the best efficiency rate for production. The well has achieve an initial rate of about 11,000 bopd.

The company added that the production rate, when added with the production from Opuama-1, increases initial estimated OML 40 gross output to circa. 14,500 bopd.

Eland has been unable to produce from its OML 40 licence due to attacks on pipelines and has made plans to export crude through shipping starting from January and continue working towards the development of a permanent alternative export solution.

The Company says it is in talks with its partner, NPDC, to speed up work on a permanent alternative export solution ahead of the material increase in production expected from Opuama-7 and the re-entry and completion of Gbetiokun-1.

“We have demonstrated the phenomenal sub-surface characteristics of OML 40, with the work-over on OP3 cost of $2.3million and has resulted in the tested initial flow rates of 11,000bopd. We have clearly demonstrated the advantages of our input into the planning and delivery of the work programme on OML40 and we look forward to working with all stakeholders, both at a local, community and government level to fully exploit the opportunities contained within this license. In addition we have the opportunity to diversify our investment towards Ubima, which also can provide low cost production, producing through an alternative evacuation route,” George Maxwell, chief executive of Eland said.

Anita Fatunji