Africa-focused oil and gas firm Eland today said it is aiming to produce 2,500 barrels of oil a day from its operations in Nigeria before the end of the first quarter.
The Aberdeen-based firm, which floated on the Alternative Investment Market (Aim) in September, said production from its OML 40 onshore licence in the West African state could hit 50,000 barrels a day within four years.
OML 40 was originally licensed by Shell in 1964. Production started in 1975 at an initial rate of circa 12,000 barrels a day, but the facility was shut down in March 2006.
Eland currently holds a 45 per cent stake in Elcrest, a joint venture formed with Starcrest Nigeria Energy, which owns 45 per cent of OML 40.
The firm said its partners have approved a budget and work programme for 2013 totalling $126 million (£78.6m), aimed at restarting production by the end of the first quarter and the drilling of new production wells at the start of the third quarter.
Eland ended 2012 with cash deposits of $22.5m, the majority of which will be used to buy an additional 4 per cent interest in Elcrest and restart production at OML 40.
Chief executive Les Blair said: “I am pleased with the progress made during the four months since we joined AIM and acquired our interest in OML 40.
“With the budget and work programme now approved and finance in place, we can quickly progress the remedial and infrastructure work necessary to restart production. Our objective is to be producing at an initial rate of 2,500 barrels a day by the end of the first quarter.”
