LONDON (Alliance News) - Eland Oil & Gas PLC on Tuesday said its pretax loss for 2015 narrowed thanks to higher production and revenue for the group, while it also appointed a new chief financial officer.
Eland said its pretax loss for the year to the end of December was USD9.6 million, compared to a USD16.7 million loss in 2014. Revenue to USD18.1 million in 2015 from USD11.7 million, while operating costs ticked lower, Eland said. The 2015 revenue came from selling 341,000 barrels of crude oil.
Eland reported a total lifting of 340,809 barrels of crude oil in 2015, nearly triple the 115,722a year earlier. This was boosted by a successful workover on the Opuama-1 well in Nigeria in November, which resulted in gross production from the OML 40 prospect rising 50%.
The company said it completed the successful workover of the Opuama-3 well in April, which should result in higher production from the field, and it continues to evaluate re-entry, completion and production of the Gbetiokun-1 well at OML 40.
Production in the first half of 2016 has, however, been hit by the shut-in of the Forcados terminal, though Eland expects a material rise in the second half once the terminal reopens. Loadings to Forcados in Nigeria were halted earlier this year after an attack on an underwater pipeline amid continued unrest in Nigeria's oil-producing Delta region.
"Eland is well positioned to benefit from its strong asset base and fully funded work programme throughout 2016, which should lead to further material gains in production once the Forcados terminal reopens," Eland Chief Executive George Maxwell said.
Eland also said on Tuesday that Olivier Serra will join the company as chief financial officer and an executive director with immediate effect. Serra is the former CFO of Canada-listed oil and gas company Sea Dragon Energy.
Eland shares were flat at 31.00 pence Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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