A Blessing turned Curse – Oil Exploration in OML 40

Pause and imagine, the predicament of the people residing within the OML40 communities in the Niger Deta. If this is your community – where a private company (registered in Aberdeen Scotland) with five years tax exemption in Nigeria – daily operating and damaging the environment and socio-economic of the people who reside in this region.

Eland Oil & Gas can not operate like this in any part of the United Kingdom without any corporate social responsibility to the people within the community they operate. They can not behave recklessly and arbitrarily without any consequences from the UK government. They are required to operate in a transparent and responsible manner with a clear business code of conduct and agreeable obligations to the UK government, local council and communities.

In the Niger Delta region and Nigeria, they can get away with anything – they are actively and passively subjugating the people and milking the people natural resources daily without any corporate and social responsibility to the people in these communities.

It is beyond shocking that Eland Oil & Gas and their cohorts do not pay their fair share of taxes either in Nigeria or United Kingdom. The damage caused by Shell Royal Dutch (Shell Nigeria) for over thirty-five years of operation and Eland Oil & Gas (Elcrest) to the people socio-economic and environment within the OML40 communities due to their aggressive oil exploration operations is unexplainable!

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This is my village where my ancestors and parents calls HOME!

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Go and find out how much the so called company “give back” to the communities where they operate. If Eland Oil & Gas and their various JVs are honouring the MoU they signed with the communities. Instead, they have adopted the “divide and rule” mechanism to subjugate, abuse the people and shut down any voice protesting about the predicament befalling the people and environment within the OML40 communities.

This is a place where Eland Oil & Gas and their JV called Elcrest with the so called Sir Emeka Offor making thousands and millions of dollars daily and monthly.

Ironically, in these communities the kids, youths, women and men are struggling daily to survive – their livelihood daily destroyed, no form of meaningful employment, unemployment over the roof and old & young engulfed with illness without any form of medical facilities. The so called State and Federal government has failed the people. #SavePOLOBUBO #SaveOPUAMA #SaveEGBEMA #SaveOML40

Do the calculations yourself – daily x $50 per barrel = No Corporate Social Responsibility (CSR)!

Shell Royal Dutch Company came operated for over 35 years and left the place much more worst. Now it is Eland Oil & Gas Plc operating with these cohorts – Emeka Offor, George Maxwell & Co living large! Below the latest operational update report from the company posted in London Stock Exchange (LSE).

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Eland Oil & Gas PLC (AIM: ELA), an oil & gas development and exploration company operating in West Africa with an initial focus on Nigeria, is pleased to announce the following operational and funding update.

Opuama is currently producing approximately 8,000 barrels of oil per day (“BOPD”), from the Opuama-3 well only, with export through shipping ongoing. Since the Company’s last announcement, approximately 120,000 barrels of oil have been delivered to the export terminal, with a further circa 40,000 to be injected imminently. Monetisation of this crude is expected to be in the region of $8.5million in the coming weeks.

The previously announced borrowing base review of the Company’s Reserves Based Lending facility is complete and has resulted in a borrowing base amount confirmed at $24million. The redetermination was based on the production performance of Opuama-1 and Opuama-3, shipping export route and outlook.

The Company expects to commence the side-track of Opuama-7 well by the end of H1 2017. Approximately a further $7million of capex is required for the completion of the Opuama-7 side-track, which is expected to add a further 6,000 gross barrels of production from OML 40. Following the successful side-track of Opuama-7, the Company will look to include this significant increase in production in its borrowing base and expects the headroom to increase accordingly to allow for further development funding for OML 40.

The Company has a current cash balance of $7.5million of which, pursuant to the borrowing base redetermination, $0.8million is restricted to cover debt service.

George Maxwell, CEO of Eland, commented:

“The successful borrowing base review with our bank, Standard Chartered, ensures we are funded for our upcoming work programme at Opuama-7 which we expect to commence in the near term. Weare targeting bringing Opuama field’s gross production from Opuama-1, 3 and 7 up to 17,500 barrels of oil a day by early H2 2017.

“There is real momentum in the business as we focus on growing our production sharply and I look forward to updating all stakeholders on our drilling activities at Opuama-7 in the future.”

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