20 Mar 2019 07:10
20 March 2019
Eland Oil & Gas Plc ("Eland" or the "Company")
Extension of Share Buyback Programme
The board of directors of 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 following publication of its results this morning that it has decided to increase the budget of the ongoing share buyback programme (the "Programme") by a further £3.0 million to a maximum of £6.0 million (the "Maximum Amount"). Further to the RNS dated 19 November 2018, the Company had launched the programme to purchase ordinary shares up to the value of £3.0 million.
Since commencing the Programme, Eland has purchased 2,357,811 shares at an average price of approx. 118 pence per share and the total cost to date of the shares purchased is £2.77 million. Any ordinary shares repurchased have and will be held as treasury shares in accordance with the provisions of the Companies Act 2006.
The Board continues to believe that the current share price undervalues the Group's assets, the performance of the business to date and its future prospects. The Group's robust balance sheet provides the opportunity to enhance shareholder return through both the continued development and growth of Eland's resource base, as well as the Company's increased capital allocation policy.
The Company has entered into an agreement with its broker Stifel Nicolaus Europe Limited ("Stifel") to carry out purchases of its ordinary shares under the Programme on its behalf. Further to the RNS on 20 February 2019, and following release of the Company's' full year results today, the Company is no longer in its close period, as such, on market purchases pursuant to the Programme will now be made at the Company's discretion.
The Programme will be executed in accordance with the Company's general authorities to make on market purchases which was approved by shareholders at the Company's AGM on 15 May 2018.
The maximum price paid per ordinary share shall be no more than 5 per cent above the average of the middle market quotation of the Company's shares for the five business days prior to the day the purchase is made.
The Company intends to operate within the safe harbour provisions set out in the Market Abuse Regulation 596/2014 and Chapter 12 of the Listing Rules. Share repurchases will be undertaken until the earlier of the Maximum Amount being repurchased and the 2019 AGM of the Company.
The Company will make further announcements in due course following the completion of any share repurchases.
George Maxwell, CEO of Eland, commented:
"We are happy to extend our successful share buyback programme by a further £3million, increasing it to a maximum of £6million. This increase in limit reflects the Company achievements in 2018 and our confidence in further progress in 2019."
For further information:
Eland Oil & Gas PLC (+44 (0)1224 737300)
www.elandoilandgas.com
George Maxwell, CEO
Ronald Bain, CFO
Finlay Thomson, IR
Peel Hunt LLP, Nominated Adviser & Joint Broker (+44 (0)20 7418 8900)
Richard Crichton / David McKeown
Stifel Nicolaus Europe Limited, Joint Broker (+44 (0)20 7710 7600)
Callum Stewart / Nicholas Rhodes / Ashton Clanfield
Camarco (+44 (0) 203 757 4980)
Billy Clegg / Georgia Edmonds / Tom Huddart
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*
The information contained within this announcement is considered to be inside information prior to its release, 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.