ELAND OIL & GAS PLC 6 April 2018
Eland Oil & Gas PLC
("Eland" or the "Company")
RBL Facility Update
Eland Oil & Gas PLC (AIM: ELA), an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, is pleased to announce the following update on its Reserve Based Lending ("RBL") facility.
Following the successful infill drilling of Opuama-8 the Company has reprofiled its RBL facility with its lenders, Standard Chartered Bank, The Mauritius Commercial Bank Ltd and Mercuria Energy Trading S.A. The facility amount remains at $35million but the initial borrowing base amount has increased from $40 million to $70.1 million based on only Opuama-1, -3, -7 and -8 production and cash flows. Of the available facility, $27 million is currently drawn.
The RBL facility has been amended and restated with the same maturity of 30 June 2019, however, principal repayments will now not commence until March 2019. All other terms of the facility remain the same. Funds will continue to be conservatively used, along with the regular cash inflows from Opuama production, to support the funding of the remaining Opuama infill wells, growing Opuama's production to over 30,000bopd in H1 2018, as well as supporting the development of other Company assets.
The Group's current cash position is $35.6 million.
Ronald Bain, CFO of Eland, commented:
"The exceptional increase in headroom, which equates to the size of the existing facility, from the introduction of the Opuama-8 well shows the hugely accretive quality of each new well drilled on the OML 40 asset and the significant growth in value they bring to stakeholders. The Company continues its preparations to refinance the RBL in 2018 into a longer-term facility based on Opuama's full production potential and future OML 40 development."Ends
For further information:
Eland Oil & Gas PLC (+44 (0)1224 737300)
LEI:213800QDGQKG3JKKRR86
www.elandoilandgas.com
George Maxwell, CEO
Ronald Bain, CFO
Finlay Thomson, IR
Canaccord Genuity Limited (+44 (0)20 7523 8000)
Henry Fitzgerald O'Connor / James Asensio
Panmure Gordon (UK) Limited (+44 (0)20 7886 2500)
Adam James / Atholl Tweedie
Tom Salvesen
Camarco (+44 (0) 203 757 4980)
Billy Clegg / Georgia Edmonds / Tom Huddart
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 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 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, are as measured at the Opuama PD meter, are subject to reconciliation and will differ from sales volumes.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.
This information is provided by RNS
Attachments
- Original document
- Permalink
Disclaimer
Eland Oil & Gas plc published this content on 06 April 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 06 April 2018 08:15:04 UTC
