Eland Oil & Gas Regulatory News (ELA)

31 March 2017

Eland Oil & Gas PLC

 ("Eland" or the "Company")

Correction: Quarterly Update

This announcement replaces the previous release made on 31 March 2017 under RNS number 1326B.

The previous announcement stated the Company is planning to commence the workover and side-track of Opuama-7 by the end of H2 2017.

This should have stated that that The Company is planning to commence the workover and side-track of Opuama-7 by the end of H1 2017.

This is the only change to the previously released announcement. The correction is included in the full text of the announcement below.

Eland Oil & Gas PLC (AIM: ELA), an oil & gas development and exploration company operating in West Africa with an initial focus on Nigeria, is pleased to announce a quarterly update of its operations.

Following recommencement of production in January, OML 40 has now produced over 330,000 barrels of oil, from the Opuama-3 well only. Following choking back of Opuama-3 for testing and reservoir optimisation average production for full producing days since recommencement of production has been approximately 8,000 bopd.

To this date over 160,000 barrels of oil have been delivered to the export terminal with approximately a further 160,000 barrels ready for imminent injection. The Company has monetised 154,173 barrels of crude at an average price of $52.14 per barrel, with cash receipts of over $8 million. The Company expects to monetise the next 160,000 barrels in the coming weeks.

Production was temporarily halted to allow maintenance on the FPSO. The Company, having already produced 330,000 barrels, has used this opportunity to review the performance of the shipping operation. Modifications of the mooring system have since been implemented to cater for the tides and increased volumes being delivered to the storage tanker. The Company expects to resume production by the end of next week.

Water handling at Opuama field will commence in April through the installation of a three-phase separator, allowing the commencement of production from well Opuama-1. Production is expected to be about 11,500 bopd from Opuama-1 and Opuama-3 following the resumption of production and optimising.

The Company maintains a healthy cash balance at $9MM currently and is in the process of finalizing its semi-annual Borrowing Base review, targeting no change to borrowing levels and debt availability.

The Company is planning to commence the workover and side-track of Opuama-7 by the end of H1 2017, which we anticipate will initially add an additional 6,000 bopd to OML 40 production. We also expect to commence the workover of Gbetiokun-1 in H2 2017, which we expect will deliver at least a further 7,800 bopd to production. Furthermore, the Company expects to begin development of the Ubima early production system at the end of the Nigerian wet season in September and upon completion of road and wellsite preparation.

Following on from its assessment of the production potential of Gbetiokun-1 and the associated CPR by NSAI, effective 30 March 2016, Eland has carried out an integrated technical evaluation of a full development of the Gbetiokun field. An initial development comprising six new production wells targeting the deeper reservoirs, together with Gbetiokun-1, is forecast to produce more than 50 MMB. A second phase of development, comprising six further production wells targeting the shallower reservoirs, has the potential to produce a further 15 MMB. Eland's reservoir models indicate that these wells could deliver a peak production rate of over 50,000 bopd.

Eland will be presenting at Stifel's Nigerian Investor Conference today. The presentation is now available to view on the Company's website: http://www.elandoilandgas.com/.

George Maxwell, CEO of Eland, commented:

"The achievement of getting 120m ocean going oil tankers to run a continuous cycle through the Nigerian river system should not be underestimated and whilst we will continue to implement operational efficiency we could not be more delighted and excited with the way it has begun.

The success of establishing an alternative export route has considerably de-risked our crude monetisation and has ensured that we will never again have lengthy production downtime that resulted from a single route to market.

2017 brings huge opportunity for us to significantly increase production, capitalising on our earlier success from the re-entry programs, prior to new drilling opportunities."

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.

-ENDS-

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 Edmonds

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.