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24 Nov 2014 07:00
24 November 2014
Eland Oil & Gas PLC
("Eland" or the "Company")
Operations and Financing Update
Eland Oil & Gas plc (AIM: ELA), an oil & gas production, development and exploration company operating in West Africa with a principal focus on Nigeria, is pleased to announce the following operations and financing update.
Highlights
· | Opuama Field current average gross production over 3,500 bopd (1,575 bopd net to Elcrest Exploration and Production Nigeria Ltd ("Elcrest"), Eland's joint venture company) based on production days.
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· | Average uptime on Opuama Field has increased month on month since August. Current average uptime in November 2014 of circa 90%. Current average uptime for Q4 2014 of over 74%.
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· | Current OML 40 fourth quarter gross production in excess of 140,000 barrels of oil (63,000 barrels net to Elcrest).
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· | First Oil condition precedent for drawdown of $22 million loan facility with Standard Chartered Bank complete. Availability of debt to be announced in the near term. The Company remains in advanced discussions to target a $75 million reserve based lending facility.
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· | Current cash balance of $14.7 million as at 21 November 2014.
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· | Elcrest's next oil lifting is expected to take place in December and is due to be a cargo of circa. 30,000 bbls of crude.
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· | Dredging operations, which commenced in Q3 2014, continue at the Opuama Field and are nearing completion. Drilling operations planning ongoing for an extended OML 40 development programme in 2015. |
George Maxwell, CEO of Eland Oil & Gas commented:
"Achieving a consistent level of production at Opuama has been the main objective of the management so we are very pleased with the positive developments the Company is making.
This consistency of production is now delivering the value from OML 40 while also allowing access to debt funding. This is hugely beneficial to our shareholders as it allows the Company to fully develop our assets without requiring any further equity funding.
Furthermore, the combination of a lower cost environment and our 5 year petroleum profits tax holiday on OML 40 means our netback per barrel remains significant even in the current economic environment of falling oil prices."
For further information:
Eland Oil & Gas PLC | +44 (0) 207 016 3180 |
George Maxwell, CEO | |
Louis Castro, CFO | |
Edward Cozens, IR | |
Canaccord Genuity Limited | +44 (0) 207 523 8000 |
Henry Fitzgerald-O'Connor | |
Peter Stewart | |
FirstEnergy Capital LLP | +44 (0) 207 448 0200 |
Majid Shafiq | |
Khalid Ahmed | |
Citigate Dewe Rogerson | +44 (0) 207 638 9571 |
Martin Jackson | |
Shabnam Bashir |
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