Eland secures 40 percent stake in Nigeria’s Ubima oil field

Eland Oil & Gas Plc is set to secure a 40 per cent stake in Nigeria’s Ubima field located in the Niger-Delta region. The Group aims to start production on the dormant field within a year.

Ubima, first drilled in the 1960s, needs a $125 million investment and can be in production 9 to 12 months after beginning its program, the company said in a statement Friday.

“We will be able to lead the development and move quickly to bring these assets into early production generating strong cash-flow,” said Leslie Blair Chief Executive Officer of Eland.

The Aberdeen, Scotland-based explorer has a focus on West Africa, primarily Nigeria. The company expects to produce 7,000 barrels a day from its OML 40 license in the Niger Delta by the end of the year.

The company held cash and cash equivalents of $19.7 million at the end of June, up from $3.8 million at the end of last year.