Eland Oil & Gas has announced, through its joint-venture subsidiary Elcrest Exploration and Production Nigeria, that the Honourable Minister of Petroleum Resources has consented to Elcrest’s renewal of its equity participation in Oil Mining Lease 40 (‘OML 40’), for a further 20 years, taking effect on 22 October 2018.
The consent is conditional on Elcrest payment of a Renewal bonus of US$6.3 million within 90 days and a commitment from the OML 40 JV to gas monetisation and additional sale 25MMSCF/Day with the gas sales agreement to be signed within 5 years. The Company is currently preparing the title deed for OML 40 to conclude the renewal process. All other conditions precedent to the consent have been met.
George Maxwell, CEO of Eland, commented:
‘We are delighted to confirm the formal renewal of our OML 40 licence. This continues the OML 40 Joint Venture’s excellent opportunity to continue the significant investment into OML 40’s work programme; continuing to increase production, proven reserves, cash flow local employment and government take.
We look forward to a continuing positive partnership with Nigerian Petroleum Development Company and pushing together to make OML 40 one of the most significant license blocks in Nigeria.’
Source: Eland Oil & Gas