Eland Oil & Gas Regulatory News (ELA)

23 November 2016

Eland Oil & Gas PLC

("Eland" or the "Company")

Opuama-3 Production Test Completion and Operations Update

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 that of the Company has fully tested the Opuama-3 well, which was worked over in April this year, and also provides an operational update.

The Opuama-3 well has been flow tested at several choke sizes to establish the maximum efficiency rate for production. Opuama-3 is a dual-completion well with the Long String accessing the D1000 reservoir and the Short String accessing the D2000 reservoir. The Long String tested at 5,955 barrels of oil per day on a 48/64-inch choke and the Short String tested at 5,067 barrels per day on a 48/64-inch choke, giving a combined rate of about 11,000 bopd. No water was produced from either string during the tests.

This Opuama-3 production rate, when combined with the production from Opuama-1, increases initial anticipated OML 40 gross output to circa. 14,500 bopd.

As previously announced, OML 40 has not been in production as a result of interruptions to third party export facilities. Despite all parties working towards a period of stable production, interruptions have continued. In light of the ongoing uncertainty, it is intended that the Company will now accelerate its plans for the implementation of crude export through shipping and continue working towards the development of an additional permanent alternative export solution.

Shipping the crude as an alternative to pipelines is a well established route to monetisation in Nigeria and the Company's plans are already well advanced for this option which is expected to commence by January. The Company is in discussion with its partner NPDC to accelerate work on a permanent alternative export solution in advance of the material increase in production that is expected from the side-tracking of Opuama-7 and the re-entry and completion of Gbetiokun-1. The Company does not anticipate commencing these workovers until production can be regularised to the export terminals and the Company will provide an update on timing of the work programme following recommencement and stabilisation of production from Opuama. However, the Company has alternative production options within our Ubima Field and will review opportunities to accelerate this development.

Although the Forcados terminal remains under force majeure, Elcrest Exploration and Production Nigeria Ltd, Eland's joint venture company, completed a crude oil sale of 45,000 barrels from Forcados terminal in October. In addition to the production from the recent Opuama-3 well test of 33,900 barrels of oil, the 6,000 barrels of stored crude from the Opuama-3 production test in April 2016 has also been injected into the OML 40 export line for future liftings.

George Maxwell, CEO of Eland, commented

"Developing opportunities in Nigeria can contain a number of challenges but the rewards more than compensate for these periodic production delays. We have demonstrated the phenomenal sub-surface characteristics of OML 40, with the work-over on OP3 cost of $2.3million and has resulted in the tested initial flow rates of 11,000bopd. We have clearly demonstrated the advantages of our input into the planning and delivery of the work programme on OML40 and we look forward to working with all stakeholders, both at a local, community and government level to fully exploit the opportunities contained within this license. In addition we have the opportunity to diversify our investment towards Ubima, which also can provide low cost production, producing through an alternative evacuation route"

-ENDS-

In accordance with the guidelines of the AIM Market of the London Stock Exchange, John Downey, a geologist and Eland's Chief Technical Officer, who has a BSc from Nottingham University, an MSc from Leeds University and has over 30 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.

For further information:

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

www.elandoilandgas.com

George Maxwell, CEO

Olivier Serra, CFO

Finlay Thomson, IR

Canaccord Genuity Limited (+44 (0)20 7 523 8000)

Henry Fitzgerald O'Connor

Nilesh Patel

Panmure Gordon (UK) Limited (+44 (0)20 7 886 2500)

Adam James / Atholl Tweedie

Tom Salvesen

Camarco (+44 (0) 203 757 4980)

Billy Clegg / Georgia Mann

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 OML 40 which is located 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 83.2 mmbbls, gross 2C contingent resources of 41.2 mmbbls and a best estimate of 254.5 mmbbls of gross unrisked prospective resources. The Ubima field holds gross 2P reserves of 2.4 mmbbl of oil and gross 2C resource estimates of 31.1 mmbbl.

Forward-looking statements

This report has been prepared to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. The Statement should not be relied on by any other party or for any other purpose.

The report contains certain forward-looking statements. These statements are made by the directors in good faith based on the information available to them up to the time of their approval of this report but such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

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.