ERHC Energy Inc (ERHE)

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Eland Doubles Production
Wednesday, January 16, 2019

Eland Oil & Gas saw its daily oil production through its Elcrest JV average 8,000 bpd in Nigeria over 2018. 2018’s totals more than double its average production of 3,934 bpd during the previous year.

The 2018 exit production rate of 13,240 bpd net to Elcrest (29,425 bopd gross), is a record production rate for OML 40 and Eland (peak record production of 13,986 bpd net to Elcrest (31,081 bopd gross).

The company also saw its Ubima field test at combined rates of up to 1,400 bpd net to Eland, with commercial production commencing soon.

The past year was the most active development period in the company’s history with seven wells drilled, re-entered and completed on the Opuama, Gbetiokun and Ubima fields.

Moving forward into 2019, production is expected to average in the range of 14,000 to 17,000 bpd net to Elcrest. The 2019 active development work program is targeting four new wells across Opuama and Gbetiokun.

The company’s first pure exploration well, the Amobe, is expected to spud at the end of Q2 2019, targeting best case gross resources of 78 million stock tank barrels.

Commercial production from the Ubima field is expected in H1 2019.

On the corporate end, 2018 saw Eland successfully refinance existing a reserve-based lending facility with the potential to increase to $200 million (subject to production growth and reserves). The company ended the year with an unaudited cash position of $42.6 million and net debt position of $4.7 million