Natural resource production and development firm Eland Oil and Gas has predicted that its Opuama-9 well, at the Oil Mining Lease, OML 40 asset in Nigeria, is expected to perform at the high-end of prior guidance.
The well was initially drilled to a depth of 9,000 feet and encountered two reservoirs with 28 and 35 feet of net pay, and is now being deepened further to appraise the E2000 reservoir to aid for the planning of future horizontal drilling.
The AIM-traded company said it expects to complete the well by the end of May and chief executive George Maxwell said the company was “very encouraged” by results thus far.
“Log results lead us to believe that our short-term target of over 30,000 barrels of oil per day from the Opuama field is very achievable, especially as the Opuama-10 infill well will be drilled shortly after the completion of Opuama-9. We look forward to confirming the results of the E2000 appraisal and initial production rates from Opuama-9 in due course,” said Maxwell.
OML 40 is located in the northwestern Niger Delta. The terrain is mangrove swamp intersected by the Benin River. Production from Opuama started in 1975 peaking at 11,000 b/d from five wells. Production was exported by pipeline 67 kilometres south to Shell’s Forcados oil terminal. Forty-three million barrels had been produced when Opuama was shut-in in 2006.
In 2012, Elcrest E&P completed the acquisition of a 45% interest in OML 40 from Shell, Total and Eni.
Last year, the company said it has produced over 330,000 barrels of crude oil from only one well in Oil Mining Lease (OML) 40 since the beginning of the year.
The company further stated that it intends to start the work-over and side-track of the Opuama-7 well before the end of the first half of 2017.
The company said OML 40, through the Opuama-3 well, has produced 330,000 barrels since production restarted in January after production was temporarily halted to allow maintenance on the floating production, storage and offloading vessel.
The company noted that the achievement of getting 120 meters ocean going oil tankers to run a continuous cycle through the Nigerian river system should not be underestimated and whilst it will continue to implement operational efficiency it could not be more delighted and excited with the way it has begun.
“The success of establishing an alternative export route has considerably de-risked our crude monetisation and has ensured that we will never again have lengthy production downtime that resulted from a single route to market.
“2017 brings huge opportunity for us to significantly increase production, capitalising on our earlier success from the re-entry programs, prior to new drilling opportunities.”
The company explained that the well has been choked back so the reservoir can be optimised, with output averaging around 8,000 barrels each day, the company CEO noted.
It added that since the restart, 160,000 barrels of crude oil was delivered to the export terminal and a further 160,000 barrels is expected to be injected imminently.
It said, The company in 2017 monetised 154,173 barrels of crude at an average price of U$52.14 per barrel, with cash receipts of over $8.0 million.