Eland Oil and Gas is preparing to drill its first new well in the Nigerian OML 40 License after being hit by major rig delays which saw them cut production forecasts in half.
The new well, due to be spudded before the end of the year, will follow the reopening of two wells that were closed shut in 2006.
First oil production of at least 2,500 barrels of oil per day is expected in October and each following well is expected to increase production by about 3,000 barrels of oil per day.
The company estimates to close the year on between 2,500 to 5,500 bopd, dependent on the completion of the first well.
But Eland had to halve its production forecast from 10,000 bopd – based on estimates of opening two new wells in 2013 – following delays caused by rig availability.
“Field refurbishment is progressing well and despite earlier delays, indications are that the facilities are in good condition which bodes well for the long-term development of OML 40,” said Les Blair, chief executive at Eland Oil and Gas.
“We are looking forward to gaining entry to the two previously shut in wells and our first production revenues.
“The momentum of OML 40 development work is now gathering pace,” he added.
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