Eland Oil & Gas : Gbetiokun Operations Update

RNS Number : 5483H

Eland Oil & Gas PLC

16 November 2018

16 November 2018

Eland Oil & Gas PLC

("Eland" or the "Company")

Gbetiokun 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, through its joint-venture subsidiary, Elcrest Exploration and Production Nigeria Ltd ("Elcrest"), following the successful infill drilling on Opuama, development operations continue as planned on the Gbetiokun field.

The OES Teamwork Rig has re-entered the Gbetiokun-1 discovery well, which encountered some 15 oil bearing reservoirs, as part of the initial phase of the field development. The well is currently being completed on the E2000 and E6000 reservoirs, which have total net pay thickness of approximately 69 feet and 45 feet true vertical depth ("TVD") respectively.

Following completion of operations on Gbetiokun-1, the rig is intended to move to the Gbetiokun-3 well which has multiple appraisal objectives and is planned to be completed on the D9000 and E7000 reservoirs. Production testing of the Gbetiokun-1 and Gbetiokun-3 wells will be carried out after both wells have been completed, currently targeted for before the end of the year.

Initial gross production through the Gbetiokun Early Production System ("EPS") is estimated to be approximately 15,000 barrels of oil per day ("bopd") (6,750 bopd net to Elcrest).

OML 40 recently surpassed the near-term gross production target of 30,000 bopd (13,500 net to Elcrest) from the Opuama Field.

George Maxwell, CEO of Eland, commented:

"The initial results from the re-entry of Gbetiokun-1 are very encouraging,having been drilled on time and within budget. The development of Gbetiokun has the near-term potential to deliver a 50% increase in oil production from OML 40, generating significant additional levels of cash-flow.

"In addition, I am delighted to announce that the Opuama field recently achieved record production of over 30,000 barrels of oil per day, a testament to the success of the Elcrest and NPDC partnership."

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 / Georgia Edmonds / Tom Huddart

In accordance with the guidelines of the AIM Market of the London Stock Exchange,Yannis Korakakis, MSc ofLeobenUniversity, with32years of experience in the oil and gas sector, is aPetroleumEngineer 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 75km northwest of Warri and has an area of 498km².

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 83.4 mmbbls, gross 2C contingent resources of 40.4 mmbbls and a best estimate of 254.5 mmbbls of gross un-risked 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 December 2017

**AGR TRACS April 2016

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