ABERDEEN-based Eland Oil & Gas has said an expert study has underlined the potential of its acreage in Nigeria.
The Aim-listed company said the analysis by Netherland, Sewell & Associates indicated the company will be able to produce around 22 million barrels more than expected from four existing wells on the OML 40 licence onshore.
The increase indicates that efforts to increase production by improving the performance of wells that were in place when Eland acquired its interest in the licence have reduced the need to drill more wells
The research suggests the company could produce 22.6 million barrels more from the four wells than the 10.9mm expected when the last study was completed. The additional reserves could be worth $187 million in present value terms.
Chief executive George Maxwell noted: “The level of capex investment required to produce this incremental volume is less than a dollar fifty per barrel.”
The money generated following the work on the four wells should put the company in a strong position to develop other assets in Nigeria.
On Monday Eland said Standard Chartered Bank had agreed to provide a $24 million (£18.75m) borrowing facility to support investment in Nigeria after completing a review which took account of the company’s performance in the country.
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