After shutting down its facility for seven years, Eland Oil & Gas plc has completed the restoration work of its production facilities at the Opuama oil field. To Andrew McGeary of Northland Capital partners, an investment partner to the company, the production would start soon after the pre-commissioning and testing has been successfully completed. He explained that the company has been working with the field operator to replace corroded infield flow lines, refurbish the production flowstation and repair the oil export pipeline with all corroded and damaged sections.
He assures; “Once the work is completed, it is hoping to start drilling an initial six developed wells at the field. It also expects to be producing in excess of 2,500 barrels of oil a day from two existing wells in the field by the end of the year. It then expects output to increase by about 3,000 barrels a day for each subsequent new well drilled during 2014.” He added that the management remains a key attraction to Eland and its patience is likely to be rewarded with further opportunities in country and that would trigger the drawdown of the company’s $22 million debt facility to enable development drilling that will also be supplemented by reinvestment of production cash flow.
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