Eland Oil & Gas Share Discussion Threads

[dukedosh] 07/1/2013 09:15

Indeed it is. Confirms we're on schedule for first oil at the end of Q1 and better still the excellent news that we must have secured a rig for drilling in Q3.

[typhoon] 07/1/2013 07:14

Nice Rns update this morning

[zeratul899] 06/1/2013 14:02

Yep but got out at $1.30. Was also in VST which was a disaster. I'm now out of Kurdi plays (except my old holdings in GKP) and focusing on African plays now cos thAt's where all the action is IMO.

[gunsofmarscapone] 04/1/2013 17:01

In Wzr arent you?

[zeratul899] 04/1/2013 15:46

Ha. Good to see another person on this BB.

I bought in on the dip as well and very happy I did so too. Let it fly now!

[gunsofmarscapone] 04/1/2013 13:10

Yep, two buys. One during the Oilbarrel presentation; very impressed ( political risk aware however), doubled up on the subsequent dip. Plenty to study yet relatively simple in comparison to frontier ie Falklands, Namibia exploration.

Ppc as well, nice entry point so far.

[zeratul899] 03/1/2013 11:41

Nice uptrend starting.

Anyone else here?

[dukedosh] 24/12/2012 13:15

Merry Christmas to all holders and hopefully the new year will be the making of Eland.

[dukedosh] 13/12/2012 13:34

Eland Oil & Gas catapulted into FTSE AIM 50



12:14 pm by John Harrington Two of the junior market's stars, Eland and Advanced Computer Software, are set for promotion to the FTSE AIM 50 on Christmas Eve
Less than three months after listing on AIM, Eland Oil & Gas (LON:ELA) is to be included in the FTSE AIM 50 index.

The FTSE AIM 50 index comprises the 50 largest companies by market value, and the constituents are revised on an annual basis.

Eland is set to join the index on December 24. Other AIM companies making it to the big league include acquisitive software firm Advanced Computer Software (LON:ASW), which has seen its share price soar by more than 50% over the last year.

Admission to the AIM 50 index automatically sees a company's shares move to the full SETS platform, the London Stock Exchange's flagship electronic trading system.

This, in turn, should increase a stock's visibility and can often be a prompt for brokers to start covering the company, thereby supporting liquidity and future fund raising efforts.

Eland's flotation on AIM on September 3 was the largest flotation on the junior market in more than three years.

The group raised £118mln through a placing of shares at 100p each, giving it an implied stock market valuation at the time of flotation of around £135m. The stock's current market capitalisation is £155mln.

[dukedosh] 10/12/2012 20:52

Eland to invest $190m in Nigerian asset



on DECEMBER 10, 2012 · in ENERGY
12:50 am

By Clara Nwachukwu

London Exchange-listed Eland Oil and Gas, said it plans to invest about $190million into developing its Oil Mining Lease, OML 40 asset in Nigeria, while hoping to increase crude production from the asset from current 3000 barrels per day, bpd, to 50,000bpd over the next three years.

Output projection is based on the belief that the oil block holds reserves of up to 500million barrels, the company said. It added that only about 50 million barrels or 10 percent of the proven reserves have so far been taken out of the block.

Speaking with journalists in Lagos last week about 6the company's plans for the asset, Eland's Chief Executive Officer, Mr. Leslie Blair, said the company hoped to re-stream production from the field by the first quarter of 2013.

He said, "We have raised $190million from the London Stock Exchange, LSE, and we are putting everything into the Nigerian asset. In terms of our plans for OML 40, we've presented our work programme, as you know, we are in a joint venture NPDC (Nigerian Petroleum Development Company), and they have agreed with us, and we intend to build the OML 40 to 50,000 barrels a day in a full year period."

He revealed that production on the field will start up with the 3,000bpd it closed with some seven years ago, and later ramped up to 50,000bpd in a few years. He explained that the ambitious production target is based on the suspected high prospects of the oil-rich Niger Delta region.

In Blair's assessment, "The Niger Delta is a very prospective area, but it's just underdeveloped. Frankly, it has huge potential, and some people talk about the potential but most people don't realize the potential it has, and I think that Nigeria needs the revenue and they need it right now.

"Again, the Niger Delta is capable of being developed relatively quickly if a number of new players are introduced into the market and there is an opportunity for new players to come in the Niger Delta because there are hundreds of fields that are yet to be developed."

Local content development

The Eland boss promised to support Federal Government's local content policy, saying that his company planned to use indigenous contractors for its projects.

"When I say we are fully aligned with the indigenisation policy, we also have to get the work done and done efficiently, and that means we have to work with the indigenous contractors to build up their own efficiency, so whatever we can do, whether its financial assistance we can give, if it's the advance payment for the contractors because one of the issues is that we don't have access to capital especially if you are a small company in the country."

He also recalled that a similar policy had occurred in the United Kingdom, UK, a long time ago. "We went through this in the UK, because when oil first started in Scotland, all the oil companies were American, but the British Government said we are going to change this and we did change it. And to today, probably in Scotland, you will not see American companies because the oil in Scotland was fully indigenous."

[falklands] 07/12/2012 10:51

might do an update on eland oil soon on chris oil twitter

[zeratul899] 06/12/2012 11:27

Hi chaps

I bought in today on the share price retrace. I think this will be a great company.

With regards to Eland's shareholding in OML40, dukedosh is correct.

Eland owns 45% of Elcrest E&P Nigeria, which in turn, owns 45% of OML40, which works out to a net working interest of 20.25% to Eland. However, Eland have the option to increase its stake to 49% in Elcrest by paying Starcrest (their partner) $5m, which would bring their net interest to 22.05%.

However, as part of the arrangement, Eland provided the financing for the OML acquisition as a loan to Elcrest. While repayment of this loan is outstanding, Eland has security over Starcrest's interest in Elcrest, i.e. the full 45% working interest in OML40.

I suggest you read the broker note on the company's website:



Page 14 has all the information you need on the holding structure. In general, this broker research sums up the company's situation pretty well.

Anyway, onwards and upwards!

[jtsbrown] 26/11/2012 16:36

Read the admission document. If you mail the company I'm sure they will confirm this

[dukedosh] 26/11/2012 16:14

The admission document states:

The debt facility is $22m with Standard Chartered.

Eland holds 45% of Elcrest. This will increase as Eland has agreed to acquire a further 4% taking it to 49%.

That makes 22.05% WI of OML40 to Eland.

[sporazene2] 26/11/2012 15:43

ok thanks, can you provide some more colour to the debt facility and why its more like 38%?

[dukedosh] 26/11/2012 15:36

Welcome aboard.
Eland acquired a 45% WI in OML 40 via a special purpose vehicle (SPV)
Eland hold 45% and Starcrest 55% which equates to 20.25% for Eland.
However, the effective interest will actually be a lot higher, as the acquisition via the SPV, will be funded through the debt facility set up by Eland.

[jtsbrown] 26/11/2012 15:26

Basically ela have 21.1% of the whole project. Because of the dept facility it's actually more like 38%.

[sporazene2] 26/11/2012 15:20

hi, new this share. can someone confrim that ELA have 49% of the local company that owns 45% of OML40, therefore a 22% indirect interest in OML 40. Thanks

[scallywagkid] 19/11/2012 16:45

Total To Sell Its Participating Interest In Offshore OML 138 To Petrochemical

(RTTNews.com) - Total SA (TOT, TTA.L) Monday announced an agreement to sell its 20 percent contractor interest in OML 138 block to a wholly owned subsidiary of China Petrochemical Corp., for approximate cash consideration of $2.5 billion, subject to post-closing adjustments.
The OML 138 block contains the Usan field which started production in February. The agreement is however, subject to approval by the Nigerian authorities.
"The sale of an asset operated from a minority position will allow us to focus our resources on the material growth opportunities in Total's portfolio," said Yves-Louis Darricarrère, President Upstream at Tota

[dukedosh] 19/11/2012 09:28

After seeing the OB conference and digging a little deeper, I opened a position here.

Super management team, proven track record, well funded, excellent license with potentially huge HC bearing geology, existing infrastructure to export terminal, potential to add licenses in the up coming round.

Massive upside and great risk - reward ratio even taking into account the inherent political risk in Nigeria, bunkering issues which plague many onshore pipelines to the export terminals and it's usual to expect the odd shut in (up to 60 days) due to seasonal rains and flooding in the Niger delta.

This is indeed a rare opportunity to get in at ground level that doesn't come around very often.

This will sit very well in my portfolio with MMT.V (Mart Resources Inc) which is in the same region but a bit maturer in it's development.

[sammy_smith] 15/11/2012 16:49

Video presentation with Eland Oil & Gas (AIM-ELA)
Les Blair, Chief Executive Officer
AIM newcomer Eland Oil & Gas, which raised £118 million through its September IPO, is developing OML 40 in the rich Niger Delta are of Nigeria

Click the link below:

[jtsbrown] 13/11/2012 13:40

Anyone going to the presentation tonight?

[jtsbrown] 09/11/2012 17:09

I like this bitShell itself had certified OML40's 2P reserves at 180 million barrels, while Eland is also looking to convert the 356 million barrels of prospective resources , the additional upside, into reserves with historical success rates in Nigeria of over 75 per cent.3 in 4 hit oil with reserves known!!!

[mr.oz] 09/11/2012 14:46

thanks , a good summary IMO

And a summary of the summary ;)

"The next six months of operations are focused on delivering first oil from the Opuama field on licence OML 40, and progress towards that (infrastructure renovation and well re-opening) should provide the initial company newsflow," said Canaccord's Sharp.

His 'core valuation' of the stock is 107 pence at US$90 a barrel Brent crude, with total valuation, which Sharp says includes "near and mid-term upside", of 236 pence. We set our target price, close to our central value [of 178 pence].