Eland wraps up drilling at Opuama-9 well

Via its local subsidiary, Elcrest Exploration and Production, the Africa focussed firm was in the process of installing a production tree at the Opuama-9 well, which is now expected to be handed over to the production team "in the coming week" before kicking off flow testing into the production facilities.

Under the regulatory guidelines, the Opuama production team will conduct a maximum efficient rate test, incrementally testing the well at increasing choke sizes.

Eland expects that, following completion of the MER Test, initial gross production from the Opuama-9 well will be "at the upper end" of its guidance, between 4,000 and 6,000 barrels of oil per day.

The firm also intends to move its OES Teamwork Rig to the Opuama-10 drill site, with spudding expected in June and an initial gross production of between 4,000 and 6,000 bopd.

George Maxwell, Eland's chief executive, said, "OP9 has been a challenging well but we are extremely pleased that production is likely to be at the high side of our estimate and simple well payback at current oil prices still predicted to be sub 90 days. We will soon move to and spud OP10 and look forward to a successful drilling program"

As of 1040 BST, Eland shares had collected 0.83% to 121.50p.