Eland to increase daily oil production by 50,000bpd

Eland Oil & Gas Plc, a Scottish oil and gas exploration company operating in Nigeria, has concluded plans to increase its Nigeria’s daily crude oil production by 50,000 barrels per day (bpd) from its new acquisition of OML 40 in the next five years.
Besides, the company believed that the onshore areas of the Niger Delta no longer require the financial and technical expertise of the major international oil companies.
Already, the company has successfully raised N29.5 billion (£118 million) to buy a holding in OML 40 license, after being listed in the Alternative Investment Market (AIM). With this purchase, Eland hopes to increase its total gross production to 50,000 barrels a day as it seeks to acquire and develop under-exploited upstream assets in Nigeria.
Eland Oil and Gas Plc, established a joint venture company, Elcrest Exploration and Production Nigeria Limited, in which the company currently holds 45 per cent of the shares. The balance of the shares in Elcrest is held by a subsidiary of the Chrome Group of Companies, Starcrest Nigeria Energy Limited.
OML 40, located onshore Nigeria within the prolific Niger Delta, represents an asset with production and exploration potential and with independently certified gross recoverable 2P Reserves of 71.5 million barrels, 3P Reserves of 117 million barrels in the Opuama and Gbetiokun Fields and Mean Contingent Resources of a further 16.7 million barrels in the Abiala and Ugbo Fields. ELAND Oil & Gas Plc, a Scottish oil and gas exploration company operating in Nigeria, has concluded plans to increase Nigeria’s daily crude oil production by 50,000 barrels per day (bpd) from its new acquisition of OML 40 in the next five years.

OML 40: NNPC, NPDC, Elcrest Seal Deal

Elcrest Exploration and Production Nigeria Limited after a protracted oil block transaction with Shell, Total E&P and Agip, finally made a closure to the transaction between partners to the oil block OML 40.

After the initial challenges that had almost crippled the divestment of 45 per cent interest in Oil Mining Lease (OML) 40 by Shell and other partners and with the Federal Government’s approval of the stake assignment to Elcrest Exploration and Production Company, parties to the oil block finally signed all necessary documents to legalize the divestment deal.

Elcrest, is a joint venture vehicle owned by Starcrest Energy, a subsidiary of Emeka Offor’s Chrome Group and Eland Oil & Gas. It had on May 24, 2011 applied for consent of the Minister of Petroleum, Mrs. Diezani Alison-Madueke for the 45 per cent participating interest in OML 40. Without the government’s approval of the deal, the transaction between Shell and Elcrest would have remained illegal and Elcrest also stood the risk of forfeiting 10 percent of the bid price, which was escrowed with JP Morgan in the United Kingdom.

Eland Oil set to List on London Stock Market

Eland Oil and Gas, a West Africa-focused energy firm, has concluded arrangement to float its shares on London's junior stock market with a market value of 135 million pounds ($214 million) after completing the purchase of a stake in a Nigerian oil block.

Eland Oil Chief Executive Les Blair said that his company, in partnership with Starcrest, a Nigerian oil firm bought a 45 percent stake in block OML 40 owned jointly by Shell, Total and Eni for $154 million. The Nigerian National Petroleum Corporation (NNPC), owns the other 55 percent of the block and its subsidiary. The Nigerian Petroleum Development Company (NPDC) will take over the operating rights from Shell.

Blair said the block had 71.5 million barrels of proven oil reserves and it planned to be producing 2,500 barrels per day within six months.

Eland will list on London's AIM market at 100 pence per share raising 118 million pounds ($187 million.