Eland raises expectations for latest Nigerian well, lifts shares

Eland Oil and Gas chief executive George Maxwell
Eland Oil and Gas chief executive George Maxwell

Aberdeenshire-based Eland Oil and Gas said today that its latest well in Nigeria was capable of beating initial estimates.

Eland said on-going flow tests on Opuama-7 had shown that the well could pump out 6,700 barrels of oil per day.

Westhill-headquartered Eland initially thought it would produce closer to 5,900 barrels.

The company also said drilling had started on the Opuama-8 infill well and that work is expected to be completed next month.

Opuama-8 is thought to be capable of producing between 5,000 and 7,000 barrels per day.

Eland chief executive George Maxwell said: “We are incredibly pleased to announce the successful completion of the Opuama-7 sidetrack and the strong results from flow testing the well. The early results for initial production look to be beyond our previous expectations and will lead to a significant increase in Elcrest’s revenues and free cash flows.

Following this significant success, together with our partner NPDC, we now move our focus to the Opuama-8 well and an anticipated further increase in production of 5,000 to 7,000 bopd, which once successful will make the company one of the largest oil producers on AIM.”

Eland’s shares were up 4.42% to 65p in early trading in London.