Eland Oil & Gas has signed a rig deal with OES Energy Services for its Nigeria campaign.
The rig will drill the side-track of Eland’s Opuama-7 well, which is expected to contribute an initial production rates of 5,900 barrels of oil per day (bopd) gross, increasing near term overall production from the OML 40 development to 17,500 bopd gross.
Chief executive George Maxwell said:”Following the successful completion of our oversubscribed placing last week, I am delighted to announce the signing of a rig contract with OES to accelerate the commencement of our workover programme, starting with the side-track drilling of Opuama-7.
“We are committed to developing OML 40 to its full potential and have immediately started to deploy the additional funds recently raised. We continue to target production from OP-7 and Gb-1 in H2 2017, targeting total gross production from OML40 of 25,400bopd (net: 11,430 bopd). This is double our current levels of production and should bring significant value to all our stakeholders.”
Work is expected to start in July.
The rig will drill a sidetrack to around 7,500 ft, expected to take in the region of a month to complete. As part of the contract’s terms, Elcrest has the option to extend the contract for the re-entry of Gbetiokun-1, which it intends to start immediately after Opuama-7 sidetrack.