Eland Oil & Gas announces Final Audited Results for the Y/E 31 December 2015

Eland Oil & Gas announces Final Audited Results for the Y/E 31 December 2015

Eland Oil & Gas, an oil & gas development and exploration company operating in West Africa with an initial focus on Nigeria, has announced its audited results for the year ended 31 December 2015.

    Operational Highlights
  1. Total lifting of 340,809 bbls of crude oil in 2015, an increase of 195% compared to the previous year.
  1. Successful work-over on the Opuama-1 well in November, leading to a 50% increase in gross production from OML 40 and a year-end gross exit rate of 4,400 bopd.
  1. Record facilities and pipeline uptime on OML 40 of 84%.
  1. Gross 83.2 mmbbl of 2P reservesand 41.2 mmbbl of 2C resources on OML 40.
    Financial Highlights

Cash and cash equivalents balance of $8.5 million at 31 December 2015.
In 2015 the Group sold 341,000 bbls of crude oil, generating revenue of $18.1 million for the year (2014: $11.7m).
The consolidated loss after tax for the year was $6.8 million compared with $16.3 million for 2014.
In 2015 Eland embarked upon a cost reduction programme in response to lower oil prices, leading to a 24% reduction in adjusted operating expenses in 2015* and a 28% reduction in G&A.
$15m of the Reserve Based Lending (‘RBL’) facility with Standard Chartered Bank had been drawn down by 31 December 2015. The available facility is currently capped at $25.4 million and will be re-determined on 30 June 2016.
Elcrest continues to benefit from Pioneer Tax status in respect of OML 40. Elcrest is exempt from paying Petroleum Profits Tax for an initial three year term until 30 April 2017 which can then be extended by a further two years on successful application.
*Operating expenses excluding royalties and adjusting for release of provisions

    George Maxwell, CEO of Eland, commented:

‘We are pleased to announce our Full Year results for 2015, which showoil productionfrom OML 40 in Nigeria almost trebling, and the Group in excellent shape. In early 2016, we have successfully completed an $18.5 million equity raise at a premium to the prevailing share price, and combined with forward sales to our offtake partner, this gives us a current cash position of $25m. With the recently announced success of the Opuama-3 work-over in OML 40, which delivered exceptional flow-rates of over 10,500 bopd, we believe that Eland is well positioned to benefit from its strong asset base and fully funded work programme throughout 2016, which should lead to further material gains in production once the Forcados terminal reopens.’
Outlook
The Company’s audited 2015 Annual Report & Accounts have been posted on the Company’s website.
Source: Eland Oil & Gas PLC
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