African-focused exploration firm Eland says it is looking to start production from its operations in Nigeria next month.
The Aberdeen-based company posted a first-half loss of $11million, more than double the same period last year, after heavy investment in staff and studies over the last few months to get the field ready.
The licence area, which includes the previously shut down Opuama, had been due to restart operations in the first half of the year, but delays with contractors and procurement has left it behind schedule.
Work is expected to restart in October, with two production wells being reopened and field flowlines replaced, before the first new production well on the licence since the 1970s is drilled. The field is expected to have reserves of at least 54million barrels.
“Our immediate focus is on returning OML 40 back to production and with that, bringing in the company’s first cash revenues,” said chief executive Leslie Blair.
“We have worked hard to achieve this in close co-operation with the operator of OML 40, NPDC, and look forward to the start of oil production in October.
“We will then turn our attention to the development drilling programme, for which we have a rig identified, and the task of building our production revenues over the long term.”
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