Elcrest Exploration and Production Nigeria clinches new rig contracts, reports Eland Oil and Gas

On Thursday, Eland said Elcrest Exploration and Production Nigeria secured the rig contract with OES Energy Services Limited, for the OES Teamwork Rig for the company's upcoming continuous drilling campaign, given the "extremely successful" operation on the OP7 well.

According to the company, the joint venture had now committed to drilling the Opuama-9 and Opuama-10 infill wells on Opuama field, with both wells expected to contribute initial production rates of 4,000 to 6,000 barrels of oil per day, increasing potential near term overall production from OML 40 to around an expected 30,000 barrels of oil per day gross.

George Maxwell, CEO of Eland, commented: "Completion of the Opuama infill drilling campaign has the potential to increase OML 40's gross production to over 30,000 barrels of oil per day in H1 2018. This is an over tenfold increase in reported production, taking place in under two and a half years. Securing the sustained drilling program for OML 40 will drive the Company forward to become one of the largest, by production volume, E&P Companies on AIM. With increasing production and an improving oil price, our netbacks from OML 40 will significantly drive our net cash generation."