19 Nov 2018 07:00
19 November 2018
Eland Oil & Gas PLC
("Eland" or the "Company")
Share Buyback Programme
Eland Oil & Gas PLC (AIM:ELA), an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, announces that it intends to commence a share buyback programme for a maximum aggregate consideration of up to £3.0 million (the "Programme"). The Board believes that the current share price substantially undervalues the Company's assets, the performance of the business to date, and its prospects. The Company's robust balance sheet provides the opportunity to take advantage of prevailing market conditions to repurchase shares at advantageous levels.
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 Company will seek to buy back at appropriate times and considers, at the present time, the Programme to be in the best interests of all shareholders.
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, at the Company's discretion. Stifel will seek to purchase ordinary shares up to the value of £3.0 million (the "Maximum Amount").
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. Any ordinary shares repurchased will be held as treasury shares in accordance with the provisions of the Companies Act 2006.
The Company will make further announcements in due course following the completion of any share repurchases.
George Maxwell, CEO of Eland, commented:
"Eland is undertaking this Programme alongside significant continuing capital investment across its OML 40 licence, the ongoing pursuit of strategic acquisition opportunities and continues to review its dividend policy. The Board believes this Programme is in shareholders' interests and will be accretive to net asset value per share whilst retaining flexibility to both fund our existing programmes and the flexibility to explore other opportunities."
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
This announcement contains inside information 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.
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 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 83.4 mmbbls, gross 2C contingent resources of 40.4 mmbbls and a best estimate of 254.5 mmbbls of gross un-risked prospective resources*
The Ubima field holds gross 2P reserves of 2.4 mmbbls of oil and gross 2C resource estimates of 31.1 mmbbl**
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 2017
**AGR TRACS April 2016