Eland will pay a signature bonus of $7 million and a production bonus of $3 million (subject to production and receipt of Ministerial Consent for the transfer of the interest).
The field lies onshore in the northern part of Rivers State and has been carved out of OML 17. Ubima has 3D seismic coverage and four wells have been drilled in the field yet with hydrocarbons being encountered in all four wells in multiple stacked reservoirs.
Ubima is estimated to have 2C resources of 34 million barrels of oil. There is also a significant upside 3C resource estimate of 66.9 million barrels of oil with an extra 2C resource estimate of 97 Bcf of non-associated gas in two reservoirs.