Eland Oil & Gas is on firm financial footing, according to its latest company report.
The firm has un-audited cash position of $20.6 million and is fully funded for its 2016 work programme.
Chief executive George Maxwell said: “Despite the challenging market conditions, Eland has made considerable progress so far in 2016 as we continue to deliver on our low cost well re-entry strategy to sharply grow our production. During the period we have successfully raised $18.5 million, boosted our 2P reserves following the upgrades at Gbetiokun-1 and Ubima and demonstrated the potential to double our production rates again following a successful workover at Opuama-3 which had initial flow-rates of over 10,500 bopd.
“We continue to execute the outlined work program presented during our recent fund raise and have used the recent production downtime due to the Forcados Terminal shutdown to accelerate our Planned Preventative Maintenance program and improve the efficiency and reliability of the Flow Station. These actions will reduce operating costs and progress the diversification of export routes available to the Company through the proposed Benin River tie-in access for barging options and an additional 6 km pipeline to provide access to an alternative terminal.
“We have an active work programme in the second half of the year which includes the re-entry of Ubima- 1 to accelerate the development of this asset, and achieve early production and the re-entry of the Gbetiokun-1.”