Nigeria : ELAND OIL & GAS looks forward to launch drilling on OPUAMA field.
The company said the restoration work on the Opuama flow station has now been concluded.
The company has now started the pre-commissioning and testing stage, including the trial of the final section of the 12 inch export line.
Sited onshore Nigeria, the OML 40 licence, should start producing soon after the pre-commissioning and testing has been successfully concluded.
Andrew McGeary, at Northland Capital Partners, stated : 'Initial production rates for the two shut-in wells will be keenly watched. Hopefully this will exceed the aggregate 1,500 bopd barrels of oil per day reported on shut-in in 2006 by previous operator Shell, given initial flush production. We had expected that first production would commence in January so this announcement looks to be more or less in line with our thoughts.'
He added : 'Nigeria remains a difficult place to do business, yet we continue to view the rewards as worth the risks and back Eland to deliver on expectations, albeit belatedly.Management remains a key attraction to Eland and its patience is likely to be rewarded with further opportunities in country. We expect the pace to pick up this year. First, production will trigger the drawdown of the company s US$22mln debt facility to enable development drilling that will also be supplemented by reinvestment of production cash flow. The company may take a cautious approach to drilling back to back deviated wells and this may also take longer given the pace so far demonstrated by the national operator NNPDC. Even so, we expect Eland to exit this year with significant production volumes.'
2014 Al Bawaba (Albawaba.com) Provided by Syndigate.info , an Albawaba.com company
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|Date:||Jan 6, 2014|
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