Project Profile
Location: Eastern Niger Delta, onshore Nigeria
Area: 668 sq km
Start-up Year: -
OPL 452, situated in the eastern Niger Delta, onshore Nigeria, is a sole risk exploration license where 100% of the equity is currently held by Amocon. The license covers a total area of 668 sq km with a mix of firm terrain and estuarine areas at the mouth of the Cross River. The license area is in close proximity to a large number of oil and gas discoveries. It is situated immediately to the north of the producing oil fields in OML 114 and OML 123 and is characterised as having reduced exploration risk. No well has been drilled to date by the license holder due to a lack of financial and technical capability.
Eland Oil & Gas entered into an option agreement with Amalgamated Oil Co. Nigeria (Amocon) for the exclusive right to acquire a 40% equity stake in OPL 452. The agreement comes following the completion of a technical evaluation of the license. During the option period, Eland will be reimbursed for the costs of evaluating the license. Should the option be exercised, then the initial work program will be the acquisition of seismic to be followed by an exploration drilling program, which would be funded from operating cash flow. In the event of exploration success, the development could proceed quickly due to the proximity of export infrastructure and management experience of similar developments in the immediate vicinity.
Operators:
Amocon: Operator with 60% interest
Eland Oil & Gas: 40% interest