By Ijeoma Agudosi-Lagos
West Africa-focused Scottish Firm, Eland, an oil and gas production, development and exploration company with a principal focus on Nigeria, has stated that its joint venture partner, Elcrest Exploration and Production Nigeria Limited, sold a total of 115,722 barrels gross of crude oil from Oil Mining Lease, OML, 40 for an average price of $103.77 per barrel in 2014.
In its latest crude oil sale update, the company also announced that Elcrest had completed the loading and sale of 31,500 barrels gross of crude for an average price of $94.93 per barrel.
According to the update, this will be the group’s final loading and sale for 2014, with settlement due prior to year end.
Commenting on the company’s operational updates, the Chief Executive Officer of Eland, Mr. George Maxwell said the company had a successful end to 2014.
“Eland has had a successful end to 2014, culminating in our most recent operational updates. The Company is moving from strength to strength and is well prepared and financed for our 2015 programme,” he said.
The company has satisfied all the conditions precedent to access its $22 million loan facility with Standard Chartered Bank.
According to the company, the loan facility will allow Elcrest to continue to develop OML 40.
Eland targets to increase its total gross production to 50,000 barrels of oil equivalent per day (bopd) as the company seeks to acquire and develop under-exploited upstream assets in Nigeria.
The company had successfully raised N29.5 billion to buy a stake in OML 40 in Nigeria after being listed in the Alternative Investment Market, AIM, three years after the company was founded.
To achieve its targets, the company plans to increase production from existing wells at Opuama that had since restarted at an expected initial gross rate of at least 2,500 barrels of oil per day (bopd).
OML is an asset with production and exploration potential and with independently certified gross recoverable 2P Reserves of 71.5 million barrels, 3P Reserves of 117 million barrels in the Opuama and Gbetiokun Fields and Mean Contingent Resources of a further 16.7 million barrels in the Abiala and Ugbo Fields.
Previously held by Shell, Total and Eni, OML 40 covers some 500 square kilometres and is located onshore in the Niger Delta and contains light ‘sweet’ oil.
Since 1964, 18 wells have been drilled there, with 15 finding hydrocarbons. One field, Opuama, was formerly in production for over 30 years, from 1975 to 2006. Before its divestment programme, Shell owned 30 per cent stake in the joint venture for OML 40.
Nigerian National Petroleum Corporation, NNPC, has 55 per cent, while Total E&P Nigeria held 10 per cent and Agip Oil 5 per cent.
Shell sold 30 per cent interest of OML 40 to Elcrest Exploration and Production Nigeria, EEPN, for $102 million