Eland Oil & Gas faces delays in Nigeria

14th Aug 2013 16:04

West African explorer Eland Oil & Gas said it was facing delays to oil production from wells on a project in Nigeria.Eland said it had experienced some delays in contracting services and permits on its OML 40 licence in the West African nation.As a result, first oil production above 2,500 barrels of oil per day (bopd) from two previously shut-in wells would not take place until October.Once first oil is achieved, the long-term development and appraisal drilling programme for OML 40 will start with the Opuama field, which has an initial production capacity of 30,000 bopd, Eland said. A year-end exit production rate of between 2,500 to 5,500 bopd was expected, depending on when the first new well was completed. Production is set to increase by about 3,000 bopd for each subsequent new well drilled.Chief Executive Les Blair said: "The momentum of OML 40 development work is now gathering pace." Shares were broadly flat at 114.70p in afternoon trading in London.PW