Eland Oil & Gas Says Drilling has Begun on Ubima-1 Well in Nigeria

By August 3, 2018 Investment News

The work will target four separate reservoirs to assess the site’s potential oil drilling. The well was first discovered in 1963 but was promptly suspended. Eland Oil & Gas PLC (LON:ELA) said that a land rig has re-entered the Ubima-1, Nigeria, which was discovered 1963 before being suspended.

The plan is to assess four different reservoirs as well as carrying out two drill stem tests and acquiring accurate fluid, pressure and production data for each separate, oil-bearing horizons. An independent report published in 2016 estimates the Ubima-1 is host to proved and probable reserves of 2.4mln barrels of crude.

Gross contingent resource could be as high as 60mln barrels
The field itself, meanwhile, is thought to contain a gross contingent resource of 20.6-66mln barrels of oil.

Eland, through its local subsidiary, owns 40% of the asset and is working alongside All Grace Energy to develop Ubima, which for the UK listed group should eventually lessen its reliance on output from the OML 40 licence, also in Nigeria.

“As we look to geographically diversify our production base, Ubima is an exciting project for Eland and this is the first step in the appraisal of the field ahead of commencing full field development as early as possible,” said chief executive George Maxwell.

“Following the appraisal of Ubima-1, we look forward to updating all stakeholders on the progress of this exciting asset.”


Source: Proactiveinvestors