Strong indications have emerged that the Gbetiokun Oil Field would come online via an early production system in the second half of this year.
The phase is now estimated to be worth around $43.8 million to Eland Oil and Gas Plc which is keen to accelerate the Gbetiokun field development and has revealed an increase in oil reserves for the field, in the oil mining lease (OML) 40.
Gbetiokun would come online via an early production system with the Gbetiokun-1 well, and that initial phase is estimated to be worth around $43.8 million to Eland.
The Gbetiokun EPS has been estimated to have some 10.7 million barrels of proved and probable (2P) oil reserves before royalties, and 8.6 million barrels after. Eland’s 45 per cent interest in the asset held via the Elcrest Exploration and Production Nigeria subsidiary means that its share of 2P reserves amounts to over 3.8 million barrels.
“Following the recent success of the Opuama-3 re-entry well on licence OML 40, we are now keen to accelerate the first phase of development of the Gbetiokun field with Gbetiokun-1 being an excellent candidate to continue our strategy of cased hole workovers,” Eland’s chief executive, George Maxwell, said.
He highlighted that a competent person’s report has estimated initial flow rates of around 7,800 barrels of oil per day (gross) from the EPS.
“We are highly encouraged that the NSAI calculate a present worth net to Eland of almost $44 million for the first phase alone from an investment of only $6.5 million,” he added.