ABERDEEN-based Eland Oil & Gas has said it expects to double production in Nigeria in coming months after securing bank funding to support investment in the country.

Aim-listed Eland said Standard Chartered Bank had agreed to provide a $24 million (£18.75m) borrowing facility after completing a review which took account of its performance in the country.

Chief executive George Maxwell said Eland has developed “real momentum” in Nigeria where the company has faced significant challenges.

Eland restarted production from the Opuama field in Nigeria in 2014, eight years after it was shut in by Royal Dutch Shell amid security concerns.

However, the company had to find an alternative way of getting the output to market after the relevant export terminal was shut in in February last year due to sabotage.

Eland started shipping the output from Opuama to market in January.

With the total delivered to the sale point expected to reach 320,000 barrels in coming weeks, the company is generating millions of dollars cash a month from the output.

The company could draw on the borrowing facility to fund work on an additional (side track) well on the Opuama field.

The well is expected to help increase output from Opuama to 17,500 barrels oil daily early in the second half, from 8,000 bopd currently.

Eland shares the output with partners in the field.