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Ubima

Ubima

In May 2018 Eland announced that it has signed a rig contract to workover the Ubima-1 well. 

Eland has a 40% interest in the Ubima Field licence. The onshore area covers 65km2 in the northern part of Rivers State and has been carved out of OML 17, which itself is operated by Shell Petroleum Development Company.

Ubima Overview

Opportunity, development and plan

Highlights

  • 40% interest in the Ubima Field acquired from All Grace Energy Limited in August 2014.
  • Initial farm-in fee of $7 million; contingent production payment of $3 million payable following production of 2,000 bopd gross over a thirty day period.
  • Eland is the Technical and Financial Partner on the field development and production operations.
  • Eland is entitled to 88% of production cash flow from Ubima field until costs have been recovered.

Opportunity

  • 2C resources of 31.1 mmbbls gross*, with net resources of 13.1 mmbbls to Eland.
  • A CPR published in April 2016 assumes an early production system (EPS) on Ubima with gross 2P reserves of 2.4 mmbbls, net to Eland of 1.1 mmbbls.
  • Well appraised field with four wells drilled: Ubima-1,2,3, and 4.
  • Licence fully covered by 3D seismic which was acquired in 1997 over target reservoirs, covering 64% of the total area.
  • Excellent infrastructure with nearby roads, airport, and oil and gas pipelines. Low entry cost for land based operations using conventional technology.

*Source: Independent Report by AGR TRACS April 2016. 

Development Plan

Eland has a phased development approach:

  • Ubima-1 Re-entry: Planned dual string completion and an EPS to be installed at the Ubima-1 well site. Evacuation will be via trucking.
  • Full Field Development: The results of the EPS will be used to optimise this development; four wells are planned to develop the main reservoirs.*

New wells on Ubima are expected to deliver high flow rates and high oil recovery through accurate well placing as a result of state-of-the-art 3D seismic imaging and modern drilling techniques. 

*Source: Independent Report by AGR TRACS April 2016.