Eland Oil & Gas Regulatory News (ELA)

17 May 2018

Eland Oil & Gas PLC

("Eland" or the "Company")

Capital Markets Day Presentation

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 ahead of its Capital Markets Day presentation this afternoon.

A copy of the Capital Markets Day presentations will be available on the Company's new corporate website at http://www.elandoilandgas.com/ shortly after the presentation.

The Company will cover, among others, the following key areas in the presentation: Overview of Nigeria, Operational and Subsurface update, and a Finance update. Specifically the Company will provide the updates outlined below.

Planned work plan

Continuing with the drilling success achieved in 2017, and the current average gross production of 22,000 barrels of oil per day ("bopd"), the Company plans to undergo the following drill programme for the remainder of 2018 and 2019.

2018 Drilling Programme

· Complete Opuama-9 (D1000 and D2000 reservoirs); drill and complete Opuama-10 (D1000 and D5000 reservoirs)

· Gbetioukun EPS - re-enter and complete Gbetiokun-1; drill and complete Gbetiokun-3; commence production at an anticipated rate of 15,000 bopd gross from the two wells using leased floating facilities with oil export by ship along the Benin River Valve Station, prior to injection into the OML 40 export pipeline

· Ubima-1 re-entry and production testing three reservoirs with the ultimate objective of further drilling and converting the 31.1million 2C contingent resources into reserves

2019 Drilling Programme

· Drill and complete Opuama-11 to -13 targeting a) the E2000 oil leg and b) the D3500 and D4000 reservoirs

· Drill Amobe-1 exploration well, a large, low risk prospect comparable to Opuama in terms of both structural style and areal extent

· Full field development at Gbetiokun including drilling and completing Gbetiokun-4 to -8, installing purchased floating production facilities (up to 45,000 bopd) and oil export line to Adagbassa Manifold

Finance

Unaudited Financial Highlights

The Company has continued to perform strongly in Q1 2018, benefiting from higher oil prices, reducing opex per barrel and improving its balance sheet working capital position. The table below compares the Q1 2018 performance to that of Q4 2017.

*Working capital position as at 31 December 2017 was -$29.4m and as at 31 March 2017 it was -$15.3m

** Lifting receipt delayed from end March. Cash of $35.6 million following receipt on 3rd April

Capital Expenditure

A breakdown of the expected gross capex, fully funded from existing operations and anticipated banking facilities, from the beginning of Q2 for the rest of 2018 is outlined below.

Netbacks

The Company continues to deliver low cost, high margin netbacks with an extremely fast payback period through continued investment in the Opuama wells. An example of this can be found at Opuama-8, drilled in December 2017, where the payback period for the well at $65 per barrel oil was 90 days following initial production at 6,500 bpd gross and a total drilling cost of $18.6m. Further detail on future netback scenarios can be found in the Capital Markets Day presentation on the website.

Refinancing

The Company has a strengthening balance sheet and improving earnings, allowing it to increase its leverage through the development phase in H2 2018. To support the Company's field development plans the Company is seeking $150-200m of debt over a 3- to 5-year period to support its growth plans. The Company believes $150m of debt would be serviceable at the lowest Debt/EBITDA levels of its peer group.

Licencing

OML 40 twenty-year licence renewal process approved and agreed by all stakeholders. Now awaiting final ministerial consent.

George Maxwell, CEO of Eland commented:

"Opuama's exceptional infill drilling to date has delivered a solid baseline of production and resultingly a foundation of cashflow with material upside remaining. Building on Eland's most successful year to date we are focused on sustaining the Company financially to become a full cycle E&P through further accretive development drilling at Gbetiokun, appraisal drilling at Ubima and exploration drilling at Amobe, a low-cost, high impact exploration opportunity. Over the next 18 months we have the potential to diversify our production base from one to three fields and significantly increase production, cashflows and our reserves base as we target becoming the largest oil producer, by volume, on the AIM market."

For further information:

Eland Oil & Gas PLC (+44 (0)1224 737300)

www.elandoilandgas.com

George Maxwell, CEO

Ronald Bain, CFO

Finlay Thomson, IR

Canaccord Genuity Limited (+44 (0)20 7523 8000)

Henry Fitzgerald O'Connor / James Asensio

Panmure Gordon (UK) Limited (+44 (0)20 7886 2500)

Adam James / Atholl Tweedie

James Stearns

Camarco (+44 (0) 203 757 4980)

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 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 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 December 2017

**AGR TRACS April 2016

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.