Eland Oil & Gas PLC (AIM: ELA), an oil & gas development and exploration company operating in West Africa with an initial focus on Nigeria, is today pleased to announce its audited results for the year ended 31 December 2014. The highlights are:
· The results of the reserves and resources evaluation by NSAI of OML 40 demonstrate a best estimate prospective resources increase of 113%, as compared to the previous CPR.
· Total lifting of 115,722 bbls of crude oil in 2014. Elcrest completed the loading and sale of 95,290 bbls gross of crude oil in the four months to 30 April 2015.
· Successful recommissioning of existing infrastructure and re-opening of two existing wells in the Opuama field.
· So far the OML 40 Joint Venture has achieved a 90% uptime of facilities and pipeline during 2015.
· Acquisition in August 2014 of a 40% interest in the Ubima field onshore Nigeria with Eland acting as the technical and financial partner. Gross 2C resource estimates of 33.9 mmbbl of oil.*
· In May 2015, Elcrest received consent from the Ministry of Petroleum Resources for Elcrest’s appointment as operator of OML 40. The DPR has advised the Nigerian National Petroleum Corporation (“NNPC”) to proceed with the finalisation of the Joint Operation Agreement.
· Cash and cash equivalents balance of $15.0 million at 31 December 2014.
· In 2014 the Group sold 115,722 bbls of crude oil, generating revenue of $11.7 million for the year (2013: nil).
· The consolidated loss for the year was $16.3 million compared with $26.1 million for 2013.
· A Reserve Based Lending (RBL) facility of up to $75 million was signed with Standard Chartered Bank to fund development of OML 40. $35 million has been committed and syndication of the remaining $40 million has already commenced.
· The granting of Pioneer Tax status to Elcrest in respect of OML 40 on 1 May 2014 under which Elcrest will be exempt from paying Petroleum Profits Tax for an initial three year term which can then be extended by a further two years on successful application. This is expected to result in a significant increase in cash flows and NPV.
· The well re-entry and workover opportunities on Opuama 5 have been evaluated and are included within the 2015 work programme. The first operations are planned for Q2 2015. The well is expected to have the potential to produce between 400-600 bopd gross and in its lifetime is expected to produce 1.1 to 1.3 mmbbls gross.
· Commence a seven well development drilling programme on the Opuama field to develop the 2P reserves. Each new well is expected to produce 4,500 – 5,500 bopd gross.
· Expected 2015 year-end gross production exit rate from OML 40 of approximately 12,000 bopd gross.
· The Company is seeking to increase its current $35 million committed debt facility to $75 million through syndication.
· Continue with cost reduction programme to reduce operating expenses and maximise capital expenditure investment for 2015.
For more see: Official Press Release