Junior energy firm Eland Oil & Gas reported Monday that its Nigerian joint venture company has received consent from the Department of Petroleum Resources (DPR) to operate the OML 40 license, onshore Nigeria.
Eland said that its JV, Elcrest Exploration and Production Nigeria Limited, has received confirmation that it has fulfilled its obligations, including the payment of fees of $2.3 million to the DPR in relation to the company's appointment as operator of the OML 40 license for a 10-year period.
The Ministry of Petroleum Resources has in turn advised the Nigerian National Petroleum Corporation (NNPC) to proceed with the finalizsation of the Joint Operator Model Agreement with Elcrest in respect of OML 40 as approved by the Honourable Minister of Petroleum Resources. The Joint Operating Model Agreement has been fully drafted and is currently under review by all parties. Signing of the agreement is expected in the coming weeks. Eland Oil & Gas CEO, George Maxwell commented in a company statement: "We are delighted to have received consent from the Ministry of Petroleum Resources for Elcrest's appointment as operator of OML 40. It only remains to complete a revised joint operating agreement between Elcrest and NPDC when a further announcement will be made."
OML 40 has gross 2P oil reserves of 81.4 mmbbl found in the Opuama and Gbetiokun fields. It has a significant, only partly developed reserve base with outstanding upside of 41.2 mmbbl gross 2C resources and 254.5 mmbbl gross best estimate prospective resources*.
Gross production from OML 40’s producing field, Opuama, is over 3,500 bopd (Q4 2014).
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