Eland Oil & Gas PLC Opuama-7 Drilling and Crude Sales Update (9957Q)

TIDMELA

RNS Number : 9957Q

Eland Oil & Gas PLC

18 September 2017

18 September 2017

Eland Oil & Gas PLC

("Eland" or the "Company")

Opuama-7 Drilling and Crude Sales Update

Eland Oil & Gas PLC (AIM: ELA), an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, is pleased to confirm that the OES Teamwork Rig has been at the Opuama-7 wellsite for the past week. The drilling team has since completed all preparatory work and the rig has now commenced operations for the Opuama-7 sidetrack well. The operation remains on track to complete the well in October.

In addition, Elcrest Exploration and Production Nigeria Ltd ("Elcrest"), has completed its August lifting of 153,000 barrels of crude from Forcados Terminal. An average price of $51.44/bbl was achieved with $7.9m in revenues with the cash received last week.

Elcrest is expecting to complete a further lifting of 170,000 barrels from Forcados by early October 2017.

George Maxwell, CEO of Eland, commented:

"We are very pleased by the positive start to the Opuama-7 sidetrack operations and we look forward to the successful completion with initial production forecast at 5,900 barrels of oil a day commencing in October.

We are also very happy with the continued monetisation of OML 40's crude delivered to the Forcados terminal. The recent noteworthy levels of production and record uptime are extremely encouraging and ahead of our forecasts.

We look forward to Elcrest's liftings and revenues growing further with the successful completion of the Opuama-7 sidetrack"

For further information:

Eland Oil & Gas PLC ([phone])

www.elandoilandgas.com

George Maxwell, CEO

Ronald Bain, CFO

Finlay Thomson, IR

Canaccord Genuity Limited ([phone])

Henry Fitzgerald O'Connor / James Asensio

Panmure Gordon (UK) Limited ([phone])

Adam James / Atholl Tweedie

Tom Salvesen

Camarco ([phone])

Billy Clegg / Georgia Edmonds / Tom Huddart

Notes to editors:

Eland Oil & Gas is an AIM-listed independent oil and gas company focused on production and development in West Africa, particularly the highly prolific Niger Delta region of Nigeria.

Through its joint venture company Elcrest, Eland's core asset is OML 40 which is located in the Northwest Niger Delta approximately 75km northwest of Warri and has an area of 498km(2). In addition, the Company has a 40% interest in the Ubima Field, onshore Niger Delta, in the northern part of Rivers State.

The OML 40 licence holds gross 2P reserves of 83.2 mmbbls, gross 2C contingent resources of 41.2 mmbbls and a best estimate of 254.5 mmbbls of gross unrisked prospective resources. The Ubima field holds gross 2P reserves of 2.4 mmbbls of oil and gross 2C resource estimates of 31.1 mmbbl.

Net production figures relate to Elcrest Exploration and Production Nigeria Ltd ("Elcrest"), Eland's joint venture company. Production rates, when oil is exported via Forcados, are as measured at the Opuama PD meter, are subject to reconciliation and will differ from sales volumes.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

This information is provided by RNS

The company news service from the London Stock Exchange

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September 18, 2017 02:01 ET (06:01 GMT)