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Financial & Operational Highlights

Financial & Operational Highlights

Leverging production success to deliver shareholder value.

2017 Highlights & 2018 Developments  

  • Step-change year for the company with production increasing from zero at the start of 2017 to 18,500 bopd gross (Elcrest net 8,325 bopd) in December*
  • Successful implementation of an alternative oil export system by shipping to a secure offshore storage facility, leading to recommencement of production in January 2017
  • Opuama-7 sidetrack well commenced drilling in September, resulting in initial production of 7,500 bopd gross (Elcrest net 3,375 bopd) in November. This was followed by a successful infill well on Opuama-8
  • Successful equity placing in June 2017 raising $19.5 million to accelerate the ongoing work programme
  • Syndication of the Reserve Based Lending (“RBL”) facility in December 2017 and the re-profiling of the repayment period in March 2018. The $35 million facility is based on production and cash flows from only the Opuama-1, 3, 7 and 8 wells, with principal repayments not due until March 2019
  • Cash balance of $36.7 million at end-2017

 

*Elcrest Exploration & Production Nigeria Ltd has a 45% interest in OML 40. Eland has a 45% equity shareholding in Elcrest. OML 40 net position reflects Elcrest ownership. 

Outlook 

  • The Opuama-8 infill well commenced production in January 2018 at rates in excess of 6,000 (net 2,700) bopd. This contributed to a record high production rate for OML 40 of 23,164 bopd from the four producing wells (Opuama-1, 3, 7 and 8) in March
  • Drilling operations for Opuama-9 have commenced and the well is expected to contribute an additional 4,000-6,000 (1,800-2,700 net) bopd to total Opuama production on completion. The well will also appraise the excellent quality shallow “C” reservoirs indicated in Opuama-8 and the deeper E2000 reservoir
  • Following on from Opuama-9, the Opuama-10 well will be drilled, targeting all reservoirs from the C3000 to D5000, with initial production rates expected of 4,000-6,000 (1,800-2,700 net) bopd
  • By mid-2018 total OML 40 production in excess of 30,000 (13,500 net) bopd is anticipated
  • In H2-2018 Eland currently expects to compete an Early Production System (EPS) on the Gbetiokun field in OML 40. Gross initial production rates of around 8,000 (3,600 net) bopd are anticipated from the Gbetiokun well
  • In H2-2018 the Company also expects to commence operations on the Ubima field including re-entry and completion of Ubima-1