The OML 40 licence lies within the Niger Delta approximately 75km northwest of Warri and covers an area of 498km2. The Company completed the acquisition of a 45% equity stake in OML 40, onshore Nigeria, in September 2012.
Production from Opuama oilfield in OML 40 restarted in February 2014 and the Company and its partners have since dedicated significant resources to growing this world-class asset base. Gross production from Opuama field achieved 25,000 barrels of oil per day (bopd) in July 2018.
Drilling of the Opuama-9 well was completed in June 2018, with initial flow rates of 7,000 bopd from two strings combined. The drilling of Opuama-10 was completed in July and drilling of a further near-term production infill well, Opuama-11, is intended to develop incremental reserves from the intermediate zones not targeted by Opuama-10.
Following Opuama-11 and completion of regulatory approvals, the OES Teamwork rig will be moved to the Gbetiokun field, where it will re-enter well Gbetiokun-1 and drill well Gbetiokun-3 as part of the initial phase of the field development plan.
OML 40's booked reserves are found in Opuama in the western part of the licence, and Gbetiokun in the eastern part. Primary contingent resources lie in the Polobo and Abiala fields and there are numerous additional prospects and leads across the whole of the licence.
The OML 40 area produces light oil with low gas to oil ratio (GOR) and has a very strong aquifer drive resulting in high ultimate recoveries.
OML 40 has gross 2P oil reserves of 83.4 million barrels (mmbbls) found in the Opuama and Gbetiokun fields. It has a significant, only partly developed reserve base with outstanding upside of 40.4mmbbls gross 2C resources, and 254.5 mmbbls of gross unrisked prospective resources*.
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.
*As estimated by Netherland, Sewell & Associates Inc. as at 31 December 2017.