Eland Oil & Gas PLC Opuama Operations Update (5129W)

TIDMELA

RNS Number : 5129W

Eland Oil & Gas PLC

15 November 2017

15 November 2017

Eland Oil & Gas PLC

("Eland" or the "Company")

Opuama Operations 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 the following update on the Opuama-7 and Opuama-8 wells in licence OML 40.

Opuama-7 gross production on a 48/64" choke normalised at 7,500 bbls of oil per day (bopd). Production performance from Opuama field is strong, with gross production from all three wells being 19,000 bopd.

The drilling of the Opuama-8 infill well by the OES Teamwork Rig continues positively. The 16" hole has been drilled to target depth at 3564 ftMD/3390 ftTVD and the 13 3/8" casing has since been run. The rig is preparing to drill 12 1/4 " hole to target depth.

George Maxwell, CEO of Eland, commented:

"We are delighted to announce the higher than expected production rates from Opuama-7. This production from Opuama 7 combined with the production from the Opuama-1 and -3 wells has resulted in Opuama recording a record production, the highest in OML 40 history surpassing the previous high in December 1975.

Our focus on the Opuama-8 infill well and the near-term work programme continues and I look forward positively to updating the market further as we, together with our partner NPDC, achieve more success on the OML 40 license which is becoming one of the largest producing assets of any E&P company on AIM."

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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November 15, 2017 02:01 ET (07:01 GMT)