West-Africa-focused Eland Oil and Gas said today that it had secured a borrowing base of $24million following a review with its lender.
Eland, which has bases in Aberdeenshire, London and Nigeria, said production from two of its wells in Nigeria had helped it get the backing.
London-listed Eland is producing 8,000 barrels of oil per day from its Opuama-3 well, while 120,000 barrels have been delivered since the end of March.
The firm said it expects to earn $8.5million from the deliveries.
It will spend about $7million on drilling a side-track on the Opuama-7 well, also on the OML 40 licence.
The company’s current cash balance is $7.5million.
Eland chief executive George Maxwell said: “The successful borrowing base review with our bank, Standard Chartered, ensures we are funded for our upcoming work programme at Opuama-7 which we expect to commence in the near term. We are targeting bringing Opuama field’s gross production from Opuama-1, 3 and 7 up to 17,500 barrels of oil a day by early H2 2017.
“There is real momentum in the business as we focus on growing our production sharply and I look forward to updating all stakeholders on our drilling activities at Opuama-7 in the future.”