Eland Oil & Gas PLC has announced an operational and funding update for its Opuama well in Nigeria,  Petroleum Africa reported.

According to Proactive Investors, Eland’s also unveiled a reserves upgrade that delivers a three-fold increase in recoverable reserves for the Opuama well and Gbetiokun well operations in Nigeria.

Opuama-3 well in Nigeria’s OML is currently producing at a rate of approximately 8,000 b/d, with exports ongoing. Since Eland’s last announcement, an estimated 120,000 barrels of oil have been delivered to the export terminal, with a further 40,000 barrels to be injected imminently. The upgrade came as a result of a work a program aiming to increase production.

Eland’s CEO, George Maxwell, said “The confirmation of an additional gross 22.6m barrels from our existing well re-entry strategy is very exciting.”

“The level of capex investment required to produce this incremental volume is less than a dollar fifty per barrel, contributing to the significant NPV of $186.8m from the four wells“ he added.

Eland plans to start the side-track of Opuama-7 well by the end of H1 2017.  An additional approximate $7m of capex is required for the completion of this side-track, which is expected to add around 6,000 gross b/d of production from OML 40.