Eland Oil & Gas PLC provides Opuama-7 and Opuama-8 update
Tuesday, Nov 07, 2017
Eland Oil & Gas PLC (AIM: ELA), an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, is delighted to announce that its joint-venture subsidiary Elcrest Exploration and Production Nigeria Ltd (“Elcrest”), has successfully handed over the Opuama-7 well to the Opuama field production team and the well is currently flow testing into the production facilities and on to export.

Under the regulatory guidelines the Opuama production team are conducting a Maximum Efficient Test (“MER Test”)  incrementally testing the well at increasing choke sizes. The most recent test on a 40/64" choke, produced 6,700 bbls of oil per day on an extrapolated basis. The Opuama production team will continue the MER test up to a 48/64” choke, following which the Company will update the market further when full testing is complete, and production is stabilised. However, following the recent results it is expected that stabilised initial production from Opuama-7 will exceed the previous guidance of gross 5,900bopd.

Furthermore, following the successful completion of Opuama-7 side-track, the OES Teamwork Rig was mobilised to the Opuama-8 drill site and has since spudded the Opuama-8 infill well. Drilling is expected to be completed in December, with first oil from Opuama-8 of between 5,000 and 7,000bopd (gross) expected before the end of the year.

George Maxwell, CEO of Eland, commented:

“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.”

For more information, please visit: http://www.elandoilandgas.com

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