In September 2012, the Company completed the acquisition of a 45% equity stake in OML 40, onshore Nigeria, and listed the Company on AIM, part of the London Stock Exchange. The Group acquired a 40% participating interest in Ubima in August 2014.
After previous operator Shell undertook a controlled shutdown of OML 40 in 2006, Eland restarted production from the Opuama oilfield in February 2014. The company and its partners have since dedicated significant resources to growing this world-class asset base.
Further development and growth of the OML 40 licence is anticipated, and we plan to commence development operations on the Ubima licence during 2018.
The OML 40 licence covers an area of 498km2 and is situated within the Niger Delta, approximately 75km northwest of Warri.
The environment in OML 40 consists of shoreline and coastal mangrove swamps. The region is lightly populated with indigenous groups living in dispersed riverine communities mainly from the Ijaw and Itsekiri ethnic groups.
Oil production was re-started in February 2014 from two existing wells in the Opuama field. Oil can be exported by two routes: via the Shell-operated Trans Escravos Pipeline network running from the Opuama field south along the coastline to the Forcados Oil Terminal, and, since January 2017, via shipping to an offshore FPSO.
Production ceased temporarily in February 2016 when militants sabotaged the Forcados pipeline. Production re-started in January 2017 after alternative export facilities were installed, allowing the produced crude to be shipped to an offshore storage facility.
The OML 40 licence area holds gross 1P reserves of 39.5mmbbls, gross 2P reserves of 83.4mmbbls, gross 2C contingent resources of 40.4 mmbbls and a best estimate of 254.5 mmbbls of gross unrisked prospective resources.*
*As estimated by Netherland, Sewell & Associates Inc. as at 31 December 2017.
The Ubima licence area is located onshore in the northern part of Rivers State and covers 65km2. It has been carved out of OML 17 which is currently operated by Shell Petroleum Development Company.
- Gross 2P reserve estimate of 2.4 mmbbls of oil*
- Gross 2C resource estimates of 31.1 mmbbls of oil*
- Significant upside gross 3C resource estimate of 66.0 mmbbls of oil*
The Ubima field has 3D seismic coverage (1997) and four wells have been drilled in the field between the 1960s and 1981. Hydrocarbons were encountered in all four wells in multiple stacked reservoirs.
* Source: Independent Report by AGR TRACS April 2016.