Eland Oil & Gas 'very encouraged' as well expected to top guidance

Natural resource production and development firm Eland Oil & Gas announced on Wednesday that its Opuama-9 well, at the OML 40 asset in Nigeria, is expected to perform at the high-end of prior guidance.

The well was initially drilled to a depth of 9,000 feet and encountered two reservoirs with 28 and 35 feet of net pay, and is now being deepened further to appraise the E2000 reservoir to aid for the planning of future horizontal drilling.

The AIM-traded company said it expects to complete the well by the end of Mayand chief executive George Maxwell said the company was “very encouraged” by results thus far.

“Log results lead us to believe that our short-term target of over 30,000 barrels of oil per day from the Opuama field is very achievable, especially as the Opuama-10 infill well will be drilled shortly after the completion of Opuama-9. We look forward to confirming the results of the E2000 appraisal and initial production rates from Opuama-9 in due course,” said Maxwell.

As of 1459 BST, Eland Oil & Gas’ shares were down 0.85% at 101.13p.