Eland Oil and Gas has secured a licence extension for its key asset in Nigeria, sending its shares higher.
The west African country’s Ministry of Petroleum Resources has agreed to give the company a further 20 years on the OML 40 area. Eland and its joint venture partners, including the Nigerian State Oil Company, will have to pay $6.3 million and commit to additional gas sales from the site.
The Aberdeenshire-based company was founded in 2009 and listed on the junior Aim in London in 2012.
It expects to increase its production in Nigeria to more than 30,000 barrels per day of oil over the next few months solely from the Opuama field on the OML 40 licence, although operations on the Gbetiokun field are…