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Eland Oil & Gas completes Opuama-9 well for production

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Oilfield Technology,

Eland Oil & Gas PLC, an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, has announced that its joint-venture subsidiary Elcrest Exploration and Production Nigeria Ltd (Elcrest) has successfully drilled and completed the Opuama-9 well. The production tree is currently being installed and Opuama-9 well is expected to be handed over to the Opuama field production team in the coming week. The well will then flow test into the production facilities and on to export.

Under the regulatory guidelines, the Opuama production team will conduct a Maximum Efficient Rate Test ("MER Test") incrementally testing the well at increasing choke sizes. It is expected that, following completion of the MER Test, initial gross production from Opuama-9 will be at the upper end of our guidance of between 4000 and 6000 barrels of oil per day (bopd) (1800 - 2700 bopd net to Elcrest). On completion of the MER test the Company will announce the initial production rates.

Furthermore, following the successful completion of Opuama-9 infill well, the OES Teamwork Rig will mobilise to the Opuama-10 drill site with spudding expected in June. Initial gross production is expected to be between 4000 and 6000 bopd (1800 - 2700 bopd net to Elcrest).

George Maxwell, CEO of Eland, commented: "OP9 has been a challenging well but we are extremely pleased that production is likely to be at the high side of our estimate and simple well payback at current oil prices still predicted to be sub 90 days. We will soon move to and spud OP10 and look forward to a successful drilling programme."

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