The company reported a pretax loss of
Eland said that it is planning a seven well development drilling programme in the Opuama field, onshore
The company said it expects its year-end gross production exit rate from the OML 40 site to be roughly 7,000 barrels of oil per day.
Eland also said that it is currently in advanced discussions with its lenders, as it seeks to enter a reserve-based lending facility and significantly increase the debt level above the current
"The completion of our first two liftings of crude oil and the sale to Shell is a significant milestone for Eland. We are now generating cash from OML 40 which together with the five year Pioneer tax incentive granted earlier this year and the current and anticipated debt facility means we expect to be fully funded for our current plans. Going forward we anticipate more prolonged periods of stable production," said Chief Executive Officer
The remaining stake in Elcrest is held by
In a separate statement Friday, the company said it has acquired a 40% participating interest in the Ubima Field from
According to an independent report, the most recent independent 2C resources estimate for the Ubima Field is 34 million barrels of oil reserves. There is also a significant upside 3C resource estimate of 66.9 million barrels of oil, with an extra 2C resource estimate of 97 billion cubic feet of non-associated gas in two reservoirs.
Contingent resources refer to quantities of petroleum that have, on a certain date, been estimated as potentially recoverable from known reservoirs but are not commercially recoverable yet.
The equivalent terms for contingent resources are 1C, 2C, and 3C, and refer to a "low estimate", "best estimate", and "high estimate". The 2C level is commercially viable.
Eland said it believes an initial four development wells can be drilled and put into production nine to 12 months from the commencement of the full work programme in the Ubima Field. It said the full work programme is estimated to require development capital expenditure of
"As the technical and financial partner we will be able to lead the development and move quickly to bring these assets into early production generating strong cashflow for the benefit of all stakeholders," said Blair in the statement.
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