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    Eland acquires 40% interest in Ubima Field

    Eland Oil & Gas Plc

    Eland Oil & Gas Plc (AIM: ELA) reports that Wester Ord Oil & Gas Ltd., a wholly owned subsidiary of Eland, has agreed to acquire a 40% participating interest in the Ubima Field, onshore Niger Delta, from Allgrace Energy Ltd.

    The most recent independent 2C resources estimate for Ubima is 34 MMbbl of oil (independent report prepared by AGR TRACS). There is also a significant upside 3C resource estimate of 66.9 MMbbl of oil with an extra 2C resource estimate of 97 Bcf of non-associated gas in two reservoirs.

    Ubima lies onshore in the northern part of Rivers State and has been carved out of Oil Mining Lease (OML) 17, which is held by Nigerian National Petroleum Corp., the Shell Petroleum Development Co. of Nigeria Ltd., Total E&P Nigeria Ltd., and Nigerian Agip Oil Co. Ltd.

    Ubima has 3D seismic coverage and four wells have been drilled in the field between the 1960s and 1981, with hydrocarbons being encountered in all four wells in multiple stacked reservoirs.

    The Ubima 1 well was suspended and identified for completion and production by the previous operator, but this program was not executed and Wester Ord is planning to re-enter this well and perform an extended production test, oil produced will then be trucked to the nearest sales point prior to the Ubima export pipeline being in place.

    The company believes that subsequently an initial four development wells can be drilled and put into production 9 to 12 months from commencement of the full work program. The full work program is estimated to require development capital expenditure of $125 million; however, a proportion of this is anticipated to be met from early cash flows from the extended production test.

     

     

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