Wednesday 27 April 2016

The Company is pleased to announce the results of a Reserves and Resources evaluation on Gbetiokun-1, OML 40, ("Gb-1" or the "Asset"), provided by Netherland, Sewell & Associates Inc. ("NSAI") as at 31 March 2016 (collectively, the "NSAI Report" or the "Report").

Following the successful re-entry of Opuama-3 announced on 25 April 2016, Eland, through its joint-venture subsidiary Elcrest Exploration and Production Nigeria Ltd, together with NPDC, its co-venture on OML 40, intend next to initiate production by means of an Early Production System (EPS) on the Gbetiokun Field in the second half of 2016. This is the initial stage of a planned phased development of the Gbetiokun field. The capex associated with this initial phase is estimated by Eland at $14.5m (Net: $6.5 million) which is roughly equally split between re-entry and facilities costs. Eland's joint-venture subsidiary Elcrest Exploration and Production Nigeria Ltd holds 45% equity in the OML 40 license.

more