Eland Oil & Gas Regulatory News (ELA)

3 November 2016

Eland Oil & Gas PLC

("Eland" or the "Company")

Updated Presentation Including Management Estimates on Reserves of Resources

Eland Oil & Gas PLC (AIM: ELA), an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, is presenting at the Africa Oil Conference a presentation on 'Field Rehabilitation and Production Growth in a Low Oil Price Environment'. The presentation is now available to view on the Company's website: http://www.elandoilandgas.com/.

The updated presentation includes management estimates of an increase in reserves associated with Opuama-1 and Opuama-3 of approximately 178%. Management estimate that total recoverable reserves from these two wells have increased threefold from about 10 million barrels to approximately 29 million barrels in the first 14 years of production. The reserves recoverable on the Opuama field, as previously announced, currently remain unchanged, however, these workovers have allowed the OML 40 JV to access a significant quantity of these reserves for a very minimal cost.

Furthermore, post intervention, the gross aggregate flow rate from Opuama-1 and Opuama-3 in Year 1 is expected to be at least 9,200bopd, up from 2,900bopd. As a result of the increased flow rate the Company expect payback for the capex spend on Opuama-1 in 22 days and payback from Opuama-3 in 13 days. Management estimates the incremental NPV15 of Opuama-1 and Opuama-3 re-entries using a flat $40/bbl price deck to be $8.1million and $46.8million respectively and $10.4million and $59.9million respectively using a flat $50/bbl price deck

The presentation also contains Eland management's current estimates of OML 40 reserves and resources, including Eland's current Gbetiokun's STOIIP and P50 Reserves estimates of circa. 160MMstb and 55.8mmbbls respectively.

During the prolonged shut-in of Forcados we have continued to evaluate our portfolio. After the success of Opuama-3, and the high test flow rates obtained from the D1000 and D2000 reservoirs, we believe significant upside exists from a further workover of Opuama-7 alongside the previously announced re-entry and completion of Gbetiokun-1. The Company will announce more on the Opuama-7 workover and the updated work programme following recommencement and stabilisation of production from Opuama, OML 40. Recommencement of production from Opuama is expected in the near future and we will update the market in due course

-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 Company's medium term strategy is to grow its production base through low cost well re-entries, workovers and infill drilling. Since November 2015, the Company has delivered a three-fold increase -in production from the Opuama field in OML 40 through the recompletion of wells Opuama-1 and -3. The field most recently produced at about 4,400 bopd prior to the shut-in of Forcados but is expected to resume at a rate in excess of 10,000 bopd. The Company's export route is via the Forcados Oil Terminal but Eland is currently working on adding two supplementary evacuation routes to diversify its crude export routes.

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.