Eland Oil & Gas PLC Opuama-8 and -9 Infill Wells Update (0662C)

TIDMELA

RNS Number : 0662C

Eland Oil & Gas PLC

17 January 2018

17 January 2018

Eland Oil & Gas PLC

("Eland" or the "Company")

Opuama-8 and -9 Infill Wells 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 announce that its joint-venture subsidiary Elcrest Exploration and Production Nigeria Ltd ("Elcrest") has successfully drilled and completed the Opuama-8 well. The Opuama-8 well has been handed over to the Opuama field production team and the well will flow test into the production facilities and on to export.

Under the regulatory guidelines the Opuama production team will conduct a Maximum Efficient Test ("MER Test") incrementally testing the well at increasing choke sizes. It is expected that, following completion of the MER Test, initial production from Opuama-8 will be in line with previous guidance, at between 5,000 and 7,000bopd (gross).

Furthermore, following the successful completion of Opuama-8 infill well, the OES Teamwork Rig was mobilised to the Opuama-9 drill site and has since spudded the Opuama-9 infill well. Drilling is expected to be completed in February, with first oil from Opuama-9 of between 4,000 and 6,000bopd (gross) expected in the first quarter of 2018.

The Opuama-9 well is intended to produce the D1000 reservoir, with possible secondary production targets in the D2000 and D5000 reservoirs. In addition, the well will determine if the shallow 'C' sands contain oil in a crestal location and will be deepened to appraise the E2000 reservoir.

Production performance from Opuama field is strong, with gross production from Opuama-1, -3 and -7 wells being approximately 18,000bopd.

George Maxwell, CEO of Eland, commented:

"We are pleased with the successful drilling and completion of the Opuama-8 well and we look forward to confirming stabilised production rates in due course. The success of Opuama-8 will result in increased production and cash generation from OML 40.

Our drilling programme will continue beyond Opuama-9, where our continued investment will further enhance both production and cash flow levels."

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

In accordance with the guidelines of the AIM Market of the London Stock Exchange, Pieter van der Groen, a geologist and Eland's Chief Operating Officer, who has a geology degree from Auckland University, a Masters degree in Petroleum Geology from the University of Aberdeen and has over 25 years of relevant experience in the upstream oil and gas industry and who is a member of the Society of Petroleum Engineers and meets the criteria of qualified person under the AIM guidance note for mining and oil and gas companies, has reviewed and approved the technical information contained in this announcement.

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 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.

*Netherland, Sewell & Associates Inc CPR report 31 June 2015

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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January 17, 2018 02:00 ET (07:00 GMT)