February 14, 2018

Eland Oil & Gas PLC, an oil & gas production and development company operating in West Africa with an initial focus on Nigeria announced the following update on the Opuama-8 well in licence OML 40.
Opuama-8 initial gross production has been recorded at over 6,200 bbls of oil per day (bopd) and at the upper half of the Company’s previously expected production range. Production performance from Opuama field is strong, with gross production from all four wells being circa 22,000 bopd.
Testing and production of the three reservoirs penetrated by well Opuama-8 continues. The deepest of the reservoirs tested, the D5000, flowed at 3,250 bopd while the shallowest tested, the D3500, flowed at 2,980 bopd. Testing of the third reservoir, the D4000, will commence shortly. The test rates are encouraging and within expectation.
The drilling of the Opuama-9 infill well by the OES Teamwork Rig continues, although there have been some delays due to mechanical issues with the rig. The swamp rig has begun to drill the 12 ¼” hole with current depth 6,016 ft to a targeted vertical depth of 9,033 ft. Completion and Production from Opuama-9 is expected within Q1.
George Maxwell, CEO of Eland, commented:
“We are delighted to announce a further significant increase in Opuama production from the successful completion and test of the Opuama-8 infill well. Adding the incremental flow rates from this highly productive well has once again pushed Opuama field to the highest recorded levels in its history.
Our focus on the Opuama-9 infill well and the near-term work programme continues and I look forward positively to updating the market further as Elcrest, together with our partner NPDC, achieve more success on the OML 40 license which is becoming one of the largest producing assets of any E&P company on AIM.”
The OML 40 licence lies within the Niger Delta, approximately 75km northwest of Warri and covers an area of 498km2 . The OML 40 area produces light oil with low GOR and has a very strong aquifer drive resulting in high ultimate recoveries. OML 40 has gross 2P oil reserves of 83.2 mmbbl found in the Opuama and Gbetiokun fields. Gross production from OML 40’s producing field, Opuama, is around 19,000 bopd (November 2017). (Source and image: Eland/OES Teamwork swamp rig in OML 40, Nigeria)