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.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here