Eland looks ahead with confidence as output rises

AFRICA-FOCUSED oil and gas firm Eland said 2015 was set to be “transformational” for the company as it benefits from consistent production and drills a number of new development wells.

The Aberdeen-based firm said its Opuama field in Nigeria was seeing current average gross production of over 3,100 barrels of oil a day and said production days had risen strongly.

Eland plans seven wells at Opuama over the coming year, and said they would be “commercially robust” at current oil prices of about $50 a barrel.

Chief executive George Maxwell said: “We are incredibly pleased that we have begun this year so strongly, with very high consistency of production from Opuama.

“We do, however, continue with our cost reduction programme to reduce operating expenses and maximise the return on our capex investment.”

He added: “The work programme, with the mixture of re-entry and new development wells, will result in 2015 being a transformational year for Eland with material increases in production and revenues.”

Its cash balances stood at $8.2 million (£5.4m) at 1 March, with a further $2.4m owed.

SUBSCRIBE TO THE SCOTSMAN’S BUSINESS BRIEFING

• Get the latest business headlines from a variety of news sources emailed to your inbox each morning