Eland Oil & Gas : Gbetiokun-4 Update

RNS Number : 8830L

Eland Oil & Gas PLC

11 September 2019

11 September 2019

Eland Oil & Gas PLC

("Eland" or the "Company")

Gbetiokun-4 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 delighted to announce that through its joint-venture subsidiary, Elcrest Exploration and Production Nigeria Ltd ("Elcrest"), it has completed drilling phase of the Gbetiokun-4 development well.

The OES Teamwork rig has successfully completed drilling operations on the Gbetiokun-4 well; the first well to be drilled on

the Gbetiokun field following approval of the Field Development Plan ("FDP") on 3rd July by Nigeria's Department of Petroleum Resources.

Analysis of log data indicates that the well has exceeded pre-drill expectations, encountering high-qualityoil-bearing reservoirs close to prognosed depths. In all, approximately 345 net feet true vertical depth ("TVD") of oil-bearing sand was encountered across multiple reservoirs. During the drilling phase, a 60ft core was cut in the E5000 reservoir, with 100% recovery, which will facilitate further detailed reservoir characterisation, reservoir management and optimise life of field.

The well will now be completed as a dual oil producer on the E5000 and E7000 reservoirs, which have total net pay thicknesses of approximately 63 feet and 49 feet TVD respectively. The secondary target reservoir, E3000, which encountered 48 feet TVD of net pay will also be perforated and placed behind a sliding sleeve ready for production at a later time.

Completion of the Gbetiokun-4 well is expected at the end of September with production commencing through the recently commissioned Early Production Facility ("EPF") immediately thereafter. The EPF is already online and handling production from previous wells Gbetiokun-1 and -3.Gbetiokun-4 should increase throughput from the current 11-12,000 bopd (gross) to approximately 16-17,000 bopd (gross).

Following completion of the Gbetiokun-4 well the OES Teamwork rig will commence operations on the Gbetiokun-5 development well which is scheduled to provide additional drainage points on the D9000 and E2000 reservoir zones.

George Maxwell, CEO of Eland, commented:

"Following approval of the FDP and start-up of the EPF, both in July, we are pleased to have successfully drilled and logged the Gbetiokun-4 well. Log firmly indicates the pay zone came in well above expectations and therefore should significantly increase throughput on the Gbetiokun EPF. We look forward to updating all shareholders as we bring the well on stream in October."

For further information:

Eland Oil & Gas PLC ([phone])

www.elandoilandgas.com

George Maxwell, CEO

Ronald Bain, CFO

Finlay Thomson, IR

Peel Hunt LLP, Nominated Adviser & Joint Broker ([phone])

Richard Crichton

David McKeown

Stifel Nicolaus Europe Limited, Joint Broker ([phone])

Callum Stewart

Nicholas Rhodes

Ashton Clanfield

Camarco ([phone])

Billy Clegg

Tom Huddart

Monique Perks

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

In accordance with the guidelines of the AIM Market of the London Stock Exchange, Yannis Korakakis, MSc of Leoben University, with 32 years of experience in the oil and gas sector, is a Petroleum Engineer and member of the Society of Petroleum Engineers who meets the criteria of qualified persons 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 a 45% interest in OML 40 which is in the Northwest Niger Delta approximately 75 km northwest of Warri and has an area of 498 km². 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 82.2 million barrels, gross 2C contingent resources of 50.7 million barrels and a best estimate of 252.1 million barrels of gross un-risked prospective resources*. The Ubima field holds gross 2P reserves of 9.3 million barrels of oil and gross 2C resource estimates of 4.2 million barrels*.

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 December 2018

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] visit www.rns.com.

END

TSTZMGMLVGMGLZM