Eland Oil & Gas Regulatory News (ELA)

11 May 2015

Eland Oil & Gas PLC

("Eland" or the "Company")

OML 40 Operatorship Update

Eland Oil & Gas PLC (AIM: ELA), an oil & gas production, development and exploration company operating in West Africa with an initial focus on Nigeria, is pleased to announce its joint venture company Elcrest Exploration and Production Nigeria Limited ("Elcrest") has received confirmation from the Department of Petroleum Resources (the "DPR") that Elcrest has fulfilled its obligations, including the payment of the requisite premium and fees of $2.3m to the DPR, in relation to Elcrest's appointment as operator of OML 40 for a minimum 10 year period.

The Ministry of Petroleum Resources has in turn advised the Nigerian National Petroleum Corporation ("NNPC") to proceed with the finalisation of the Joint Operator Model Agreement with Elcrest in respect of OML 40 as approved by the Honourable Minister of Petroleum Resources.

The Joint Operating Model Agreement has been fully drafted and is currently under review by all parties. Signing of the agreement is expected in the coming weeks.

George Maxwell, CEO of Eland Oil & Gas commented:

"We are delighted to have received consent from the Ministry of Petroleum Resources for Elcrest's appointment as operator of OML 40. It only remains to complete a revised joint operating agreement between Elcrest and NPDC when a further announcement will be made."

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