Eland resumes Ubima Oil field appraisal

AIM listed Eland Oil & Gas has confirmed that the appraisal of the Ubima field has commenced with the Deutag T-57 land rig re-entering the Ubima-1 well which has been suspended since discovery by SPDC in 1963. The Company has a 40% equity interest in the Ubima field.

A dual string completion is planned for Ubima-1 on four different reservoirs, namely on the D1000 (at 4,908 feet subsea (‘ftss’)), E1000/E2000 (at 6,778 ftss) and F7000 (at 9,244 ftss). The programme includes two Drill Stem Tests (DST’s) on the E1000/ E2000 and D1000 prior to running the dual completion with the objective to obtain accurate fluid, pressure and production data for each separate reservoir. Thereafter extended production testing is planned, which will serve as a solid basis for the full field development plan of the Ubima field.

A CPR published in April 2016 by AGR TRACS ascribes gross 2P reserves of 2.4 million barrels of oil to the Ubima-1 well. On a full field development basis, the CPR carries gross contingent resources of 20.6 million barrels (1C), 31.1 million barrels (2C) and 66.0 million barrels (3C).

Ubima-1 represents Eland’s diversification of production outside OML 40. It opens a new operational leg in Rivers State, Nigeria, with ultimately different export routes than those from the Opuama field. The Company expects that upon successful appraisal the Ubima partnership will convert a significant amount of contingent resources into recoverable reserves.

George Maxwell, CEO of Eland, commented:

‘We are delighted to re-enter Ubima-1 and commence completion and testing operations. As we look to geographically diversify our production base, Ubima is an exciting project for Eland and this is the first step in the appraisal of the field ahead of commencing full field development as early as possible. Following the appraisal of Ubima-1, we look forward to updating all stakeholders on the progress of this exciting asset.’