Production, Appraisal & Exploration

www.elandoilandgas.com ELAND OIL & GAS PLC

Capital Markets Day17th May 2018

Production, Appraisal & Explorationof oil and gas in West Africa

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Eland Oil and Gas Capital Markets DaySlide: 2

A Strong Track Record

ELAND OVERVIEW

ORGANISATIONAL CHART


George MaxwellCEO & Founder

Pieter vander Groen

COO

Ron BainCFO

John DowneyChief Technical

Officer

Adebayo AyorindeMD Nigeria

Giel KrijgerTechnical Director

Edward CozensGeneral Manager

Commercial

CORPORATE ORGANISATIONAL CHART


ELAND OIL & GAS PLCWESTPORT OIL LIMITED

WESTER ORD OIL & GAS (NIGERIA) LIMITED

UBIMAALL GRACE

ENERGY LIMITED

ELAND NIGERIA LIMITED

ELCREST EXPLORATION AND PRODUCTION NIGERIA

LIMITED

OML 40

NIGERIA PETROLEUM DEVELOPMENT

COMPANY

STARCREST NIGERIA ENERGY LIMITED

45%

40%

60%

100%

55%

55%

45%

Existing Lender

Lender

The Most SuccessfulYear in Eland’s History

ELAND OVERVIEW

COMPANY SUCCESSES SINCE LAST CMD

◆ Completion of successful export through shipping and return to export from Forcadosterminal

◆ Successful equity placing in June 2017 raising $19.5m

◆ Elcrest signs maiden rig contract for the OES Teamwork rig

◆ Successful OP-7 sidetrack resulting in initial production of 7,500 bopd gross

◆ Successful OP-8 infill well with initial production in excess of 6,000 bopd gross. Contributed to record high production rate for OML 40 of 23,164 bopd from the four producing wells (Opuama-1, 3, 7 and 8) in March


6,716

11,84912,460

17,304

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Q2 Q3 Q4 Q1

OML 40 Average and Record Quarterly Production During 2017 & 2018 (BOPD) Gross

2017 2018

12,203

12,620 20,066

23,164

COMPANY SUCCESS SINCE LAST CMD

◆ Delivery of LACT unit into Nigeria and installation of SPDC facility

◆ Deployment of dewatering unit at Opuama to reduce water cut in exported crude to significantly reduce opex

◆ Successful syndication of RBL facility

◆ Opuama-9 initial targeted D1000 and D2000 reservoirs reached and cased off

◆ Signed rig contract with KCA Deutag for T57 land rig. Mobilising to Ubima in May, onsite in June.

◆ Over 90% uptime achieved from June 2017 to Q1 2018.

◆ 80% increase in share price equating to £120 million increase in market cap since last CMD


-7.4

6.7

10.1

23.9

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Q217 Q317 Q417 Q118

EBITDA

0

6000

9000

12000

15000

18,000

3000

Avg. Daily Production

-3000

-6000

6.7

11.9

12.5

17.3

THE MOST SUCCESSFUL YEAR IN ELAND’S HISTORY

ELAND SHARE PRICE


0

20

40

60

80

100

120

27/04/2017 27/05/2017 27/06/2017 27/07/2017 27/08/2017 27/09/2017 27/10/2017 27/11/2017 27/12/2017 27/01/2018 27/02/2018 27/03/2018 27/04/2018

Shar

e p

rice

(re

bas

ed t

o 5

7.2

5p

)

Eland rebased FTSE AIM All Share rebased FTSE AIM Oil & Gas rebased

Forcadoson stream

InterimResults

Opuama-7Initial Results

Opuama-8Results

Full YearResults

RBLSyndication

$19.5mEquity Raise

OES RigContracted

Apr2017

May2017

June2017

July2017

Aug2017

Sept2017

Oct2017

Nov2017

Dec2017

Jan2018

Feb2018

Mar2018

Apr2018

Near Term Strategy and Vision

ELAND OVERVIEW

SUSTAINING SUCCESS AND SHARE PRICE GROWTH

Opuama Infill Drilling

Solid baseline of production and resulting solid foundation of cashflow with material upside remaining

Sustaining the company financially to push into the full E&P cycle


PRODUCTION APPRAISAL EXPLORATION

Gbetiokun Early Production System

Ubima-1 Re-entry Amobe prospect

Further accretive development potentially adding a further

50% to production base

Appraisal to significantly increase reserves & diversifying

production base

Low-cost, high-impact exploration opportunity with potential to double company’s

reserves

NOW A FULL CYCLE EXPLORATION & PRODUCTION COMPANY

2018-20 WORK PROGRAMME (DRILLING)


TECHNICAL WORKPROGRAMME

2018 2019 2020

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

OML 40

Opuama

Gbetiokun

Amobe

Ubima

Appraisal & FFD

Rig Refurbishment

Opu-9 Opu-10

Gbe-1 Gbe-3

Opu-11

Opu-12 Opu-13

Amo-1

Gbe-4

Gbe-5

Gbe-6

Gbe-7

Gbe-8

Development Well Exploration Well

Ubima-1 Ub-5 Ub-7

Ub-8Ub-6

Appraisal Well

Opu-5

Workover Well

RUNNING ORDER


SECTION PRESENTER

NEAR-TERM STRATEGY & VISION George Maxwell

NIGERIAN OVERVIEWCovering the Nigerian E&P Industry, CSR, Governance, Legal Structure, Government and Government Funding

Adebayo Ayorinde

OPERATIONS & DEVELOPMENT: ACHIEVEMENTS AND MEDIUM TERM WORK PROGRAMMECovering Opuama, Export Routes, Gbetiokun, Ubima and Amobe

Pieter van der Groen

FINANCECovering Q1 Financials, Net Backs, Capex Investment, Financing Debt, Tax and Hedging.

Ron Bain

INVESTMENT CASE & OUTLOOKCovering organization and continued growth

George Maxwell

Q&A

Nigerian Overview

ELAND OIL AND GAS CAPITAL MARKETS DAY

Slide: 1

CONTENTS


SECTION PAGE

The Nigerian Oil industry 3

In-country Environment 10

Eland in Nigeria 12

Eland/Governance 26

Summary & Conclusion 29

The Nigerian Oil & Gas Industry


ECONOMY: OIL PRICE, SECURITY, ELECTIONS

◆ Nigeria recently emerged from a recession, and over the past year has seen strong economic growth with the Economic Recovery and Growth Plan (ERGP) largely playing a key factor

◆ The economic outlook has been positive due to the increase in production, high oil prices, increase in foreign reserves and stability of the Naira

◆ Sabotage around oil installations has abated largely due to strong dialogue between the FGN and Niger Delta resulting in limited militancy around oil operations

◆ Current security concerns have shifted largely from the Niger Delta region to the North, largely due to remnants of Boko Haram, and the recent Cattle Herdsmen crisis

◆ Recent $15Billion investment announcement by Shell and funding by other companies highlight the economic uptick in the E&P industry in Nigeria, which is a clear indication of the confidence investors have in the sector and economy

◆ Government target of 2.5million barrels of oil a day by 2020

.


NIGERIA – INDUSTRY UPDATE

◆ IOCs and NNPC moving away from traditional Cash Call funding of Joint Venture arrangements to new funding structure where IOC/Partners are to fund and make recoveries from incremental production

◆ Considerable number of assets up for renewal and this may force deals as inactive operators struggle to implement work programs and justify renewal from authorities.

◆ Opportunities continue to exist for Technical and financial partnerships with asset awardees, to fund and provide technical services and accelerate development

◆ The increasing confidence has also led to the return of funding from banks and credit funds.

◆ New funding structure emerging with service companies providing funds to acreage holders thereby promoting their services and securing market share and often securing equity positions.

DEVELOPMENT OVER THE LAST 12 MONTHS


NNPC/NPDC FUNDING & STRUCTURES

◆ NNPC/NPDC has commenced the use of alternative funding mechanisms that allow JV’s to finance itself

◆ Within the last three years NNPC has embarked on several successful Alternative Funding Programs totaling $3.7 billion, to sustain and increase the national daily production

◆ NNPC has also embarked on the use of contractor financing to finance other projects such as the recently executed $2.8Billion contractor financing agreement for the 614Km Ajaokuta-Abuja- Kaduna-Kano (AKK) gas pipeline project to deliver gas to the on-going Abuja, Kaduna and Kano Power Plants

◆ The Federal Government is currently seeking financiers for its $5.5Billion crude oil forward sales to fund other selected oil and gas projects.

◆ Shell announced an investment inflow of $15Billion in gas and deep offshore developments.

ALTERNATIVE FUNDING


STATUS OF THE PETROLEUM INDUSTRY BILL

◆ The Petroleum Industry Bill (PIB) has been unbundled into separate bills by the National Assembly as follows:

- Petroleum Industry Governance Bill (PIGB)

- Petroleum Host Community Bill (PHCB)

- Petroleum Industry Administration Bill (PIAB)

- Petroleum Industry Fiscal Bill (PIFB)

◆ National Assembly and Senate have passed thePIGB, which is focused on the administrative andregulatory aspects of the industry

◆ The PIGB has been transmitted toPresident Muhammadu Buhari for assent

◆ The other three bills are at different levels of review at the National Assembly and expected to be submitted for Presidential assent by Q3-2018


PIB

PHCB

PIFB

PIAB PIBB

Petroleum Host

Community Bill

Petroleum Industry Fiscal Bill

Petroleum Industry

Administration Bill

Petroleum Industry

Governance Bill

THE PETROLEUM INDUSTRY GOVERNANCEBILL AS PASSED BY THE NATIONAL ASSEMBLYCURRENT STATUS-PASSED BY BOTH HOUSES OF THE NATIONAL ASSEMBLY ON 28 MARCH 2018 WAITING FOR THE PRESIDENT’S ASSENT


Scraps the Department of Petroleum Resources (DPR), the Petroleum Inspectorate and the

Petroleum Products Pricing Regulatory Agency (PPPRA);

Establishes the Nigeria Petroleum Regulatory Commission (NPRC) which will take over the

functions of the 3 agencies

Unbundles NNPC :

Establishes the Nigerian Petroleum Assets Management Commission

(NPAMC) and the National Petroleum Company (NPC)

Imposes a five per cent (5%) levy on fuel sold across the

country, to be used to finance the Petroleum Equalisation

Fund.

The Minister can only grant, amend, renew, extend or revoke petroleum exploration and production licenses and on the recommendation of the

Nigeria Petroleum Regulatory Commission (NPRC).

PIGB

Provides governance and institutional framework for

the industry

The Bill is silent on the procedure for applying for an

amendment, renewal, extension or revocation of a

license or lease

SUMMARY AND CONCLUSIONS

◆ There are no immediate impact expected from the passage of the fragmented Petroleum Industry Bill

◆ Eland Management through the Oil Producers Trade Section (OPTS) and the Independent Petroleum Producers Group (IPPG) to which Elcrest, its JV company belongs will continue to monitor the situations with the bills very closely.

◆ We will continue to monitor the situation of the PIB very closely.


In-Country Environment


IN-COUNTRY ENVIRONMENT

◆ No Militant attacks onshore have been recorded in 2018.

◆ Pipeline incidents that have been reported are linked to vandalism/product theft with Illegal bunkering remaining an issue.

◆ OML 40 JV exports through the Trans Escravos Pipeline, which has significantly less downtime than Trans Forcados Pipeline

◆ The Security Management System developed by Eland is a fundamental part of the strategy to mitigate the current and future

◆ Nothing to suggest that 2019 elections will be marred by the typical violence of the past

SECURITY-FORECAST OUTLOOK


Eland in Nigeria


ELAND IN NIGERIA

Elcrest has become the partner of choice to NPDC

◆ The Project Management Team (PMT) adopted on the OML 40 JV , which is inclusive and run on a project by project basis with Elcrest funding, has proved superior to the Asset Management Team (AMT) adopted on other JVs with NPDC

◆ Following the concession of some value adding projects by the Operator, NPDC to Elcrest in 2017, Elcrest has emerged the partner of choice with its continued delivery of the projects. Elcrest are recognised as a company offering quality and value at competitive rates

◆ The OML 40 JV has become the reference point for fast track development and rapid production increase

◆ The unique PMT is recognised at NNPC as the initiative that has delivered most value to NPDC and it’s being referenced as the bastion of accelerated development

◆ NNPC’s recognition of the unique partnership and the value proposition it offers lends credence to the success of the PMT model

THE NPDC/ELCREST JV PMT


ELAND IN NIGERIA

Policy Highlights

◆ Comply with relevant national and international regulations, framework, guidelines and best practices at all time

◆ Our goal is to achieve the widest possible level of local agreement throughout the lifespan of our projects.

◆ We use local contractors

◆ We invest in local projects

COMMUNITY RELATIONS POLICY


Key ObjectiveTo contribute positively to the development of our host communities

In practice this means

◆ A systematic and flexible approachto managing community affairs

- Engagement

- Development

- Employment Creation

- Visibility

- Impactful

- Transparency

◆ Proactive steps to build and maintain strong relationships with host communities

◆ Best practices based on experience within the team

ELAND IN NIGERIASUMMARY OF MAJOR INVESTMENTS IN THE COMMUNITY


Community $m

Flowstation Operation $3.7

Community Electrification $0.7

Skills Acquisition $0.2

Rig Operations $9.2

Freedom to Operate (FTOs) $0.2

Total $14m

Major community related investments in excess of $14m

ELAND IN NIGERIA

Benefits to the community:

ELCREST HAS FULLY REENGAGED WITH THE COMMUNITIES THROUGH ITS ACTIVITIES


Catering Services

DieselSupply

SurveillanceServices

Flow Station Vegetation Clearing

2 Tugboats

2 House boats

Daily and EmergencyOperations Boat

2 Barges

Production Support Staff

Communityemployment for

Dewatering

Surveillance during Barging Operations January to May 2017

Flow Station Operations

ELAND IN NIGERIA

Benefits to Communities

◆ CD Project Maintenance

- Provided Two 500kva Power Generating Sets, supply of fuel and O&M for Opuama and Tsekelewu Communities

◆ Skill Acquisition

- Trained 60 Youths in welding & Fabrication, Motor Maintenance and Repair, plus Fashion Designing and provided them with starter packs

◆ Rig Operations to date

- Supported communities for sporting and outdoor facilities, Dredging, Marine spread, escort and security equipment, engaged 42 and 7 Youths of Opuama/Tsekelewu and Olero Youths Respectively, other community labour and surveillance activities, Waste Disposal, Fumigation Services, Vegetation Clearing of Rig Site etc.



ELAND IN NIGERIA

Benefits to Communities

◆ FTOs

- LACT Unit Otumara

- Supported communities for sporting and outdoor facilities for Ugbegungun, Ogborodo and DegheleCommunities

- Engaged 9 Youths

- One Boat

◆ Well Hardening of Opuama 1 & 3

- Supported communities for sporting and outdoor facilities

- Engaged 2 Youths

- Community boat supply



COTTAGE HOSPITAL


WATER BOREHOLE PROJECTPROJECT COMPLETED IN 2017


Tsekelewu Potable Water Borehole Project. Completed in

2017

OPUAMA POTABLE WATER BOREHOLEPROJECT COMPLETED IN 2017


Opuama Potable Water Borehole Project completed in 2017

CONCRETE JETTY AT OPUAMA ZION

◆ Jetty constructed at the request of the people to stimulate the local economy and open the hinterland for sustainable development.

◆ Project was constructed by Gemudok Global Services, an indigenous contractorfrom Opuama.

◆ During construction, 46 CommunityYouths were employed.

◆ Jetty currently in Use serving as an economic gateway to OpuamaCommunity since 2015


TSEKELEWU ELEVATED CONCRETE WALKWAY

◆ This 400 metre elevated concrete Walkway completed in 2016, links the community by providing easy access to the homesteads scattered around the area

◆ Fredgbas an indigenous contractor from Tsekelewu executed the project . 65 Community Youths were employed during the construction phase

◆ Walkway currently in use facilitating trade and communication in the community


MEDICAL OUTREACH AT UBIMA

◆ Registration and vital signs

◆ Gynecology consultation & Treatment of Pregnant Women

◆ Ophthalmology consultation and treatment –frames and lenses

◆ Dental – Tooth extraction

◆ Cervical examination for women

◆ General laboratory

◆ Pharmacy for dispensing drugs

◆ Children’s Medical Administration

◆ Distribution of treated mosquito nets


ELAND IN NIGERIA

Forward Plan

◆ Medical outreach

Preparation is ongoing for an extensive medical outreach targeted at achieving the following

◆ Awareness on malaria for the communities

◆ Distribution of drugs and eye glasses to the community after required medical tests

◆ Medical tests and treatment for malaria, high blood pressure and water borne diseases

◆ Distribution of mosquito nets to the communities

◆ Distribution of wheel chairs to assist the physically challenged

◆ Continuous education of the community on the various illnesses and diseases common in the communities and the need to seek medical help as opposed to self medication

UBIMA


Eland / Governance


ELAND GOVERNANCE POLICY

Our guiding principles are to:

◆ Provide a safe, secure and healthy workplace

◆ Reduce the effect of our activities on the environment

◆ Conduct our business ethically, fairly and in a transparent manner

◆ Partner positively with our local Communities for host community development and social development

◆ Be an employer of first choice


ELAND GOVERNANCE POLICY

◆ All employees sign (new and existing) undertake annual course on ethics and sign annual declaration

◆ Nigeria based Compliance Manager employed in 2017

◆ Supply Chain and legal Manager employed and based in Nigeria

◆ HSE Manager employed and based in Nigeria

◆ Related party policy in place

◆ Centralised gift register maintained within the group

◆ IT security system constantly reviewed

◆ Within our contracting strategy we have a supplier undertaking to our code of conduct

INCREASED EMPHASIS ON COMPLIANCE


Summary & Conclusion


SUMMARY & CONCLUSIONSUMMARY


◆ Opportunities continue to abound in Nigeria

◆ Growing investor confidence in Nigeria’s business environment particularly the oil and gas sector

◆ Significant improvement of security in the Niger Delta

◆ The Nigerian Government is committed to providing the right environment for the growth of reserves and production

◆ Significant improvement in oil price a plus for investors

◆ Eland enjoying excellent relationship with government based on unique working model, its performance and quality delivery

SUMMARY & CONCLUSION

Eland is positioned to continue to take advantage of the improved environment which we predicted last year

CONCLUSION


Back-up Slides


EXAMPLES OF COMMUNITY CONSTRUCTION PROJECTOPUAMA JETTY


EXAMPLES OF COMMUNITY CONSTRUCTION PROJECTTSEKELEWU WALKWAY


HIERARCHY OF THE NIGERIAN OIL AND GAS INDUSTRY


MIN. OF PETROLEUM

MIN. OF STATE FOR

PETROLEUM

DPR

NNPC

NPDC

◆ Under the current regime, the Ministry for Petroleum Resources is headed by the President and Commander in Chief as the Minister or Petroleum Resources

◆ Under the present administration, the Minister of State for Petroleum Resources manages the day to day business of the Ministry Resources. The Minister of State represents the Federal Government and supervises and oversees the affairs of the oil and gas industry. He reports to the Minister of Petroleum Resources.

◆ DPR is a department of the Ministry responsible for regulation of all entities involved in the oil and gas industry. The DPR reports directly to the Minister of State.

◆ NNPC is a state-owned corporation responsible for representing the government’s interests in the oil and gas industry.

◆ NPDC is a wholly owned subsidiary of NNPC responsible for upstream exploration and development of petroleum resources. NPDC is run by a Board of Directors and reports to NNPC.

DPR ORGANOGRAM


Special Category

Major Category

General Category

DPR

Upstream Operations Monitoring and Regulation

Downstream Operations Monitoring and Regulation

Service ProvidersMonitoring and Regulation

NNPC (NPDC, NAPIMS, IDSL, JV, PSC)

IOC (JV, PSC, SC)

IO (SR,PSC,MF)

NNPC (Refineries, PPMC, NHC)

Major Marketers

Independent Marketers

THE NIGERIAN NATIONAL PETROLEUM COMPANY (NNPC)

◆ NNPC is the national oil company with subsidiaries across the broad energy value chain – exploration and production, gas development, refining, distribution, petrochemicals, engineering and commercial investments

◆ On the upstream end, the NNPC is the Joint Venture partner in to the International Oil Companies (and the post divestment acquirers), in the Royalty/PPT fiscal arrangement

- The State interest in the JV’s is between 55% and 60%

◆ Under the Production Sharing Contract, the NNPC serves as theconcessionaire for the State, while the IOC and/or indigenous companies act as contractors

- Receives the Profit Oil, on behalf of the State

CURRENT STRUCTURE


NPDC

◆ The Nigerian Petroleum Development Company (NPDC) is a fully owned subsidiary of the Nigerian National Petroleum Corporation, focused on Oil and Gas Exploration and Production

◆ The entity was assigned NNPC’s interest in some of the IOC divested assets – OML 4, 38, 41, 26, 30, 40, 42

◆ Some of this asset awards are now serving as the test case for a long term plan of the Federal Government to pursue Incorporated Joint Ventures. Asset Management Teams were formed with new JV partners in 2016

◆ NPDC also is the concessionaire in the Governments Risk ServiceContracts with Agip and Sinopec

◆ The assets under the NPDC are expected to form part of the assetswhich will be transferred to the Nigerian Petroleum Company, when the Petroleum Industry Governance Bill is enacted

CURRENT ROLE AND POLICY FUTURE


THANK YOU

For Further Information Contact:

2nd Floor20 North Audley StreetLondonW1K 6WE

Tel: +44 207 016 3180

Email: [email protected]

www.elandoilandgas.com

A Strong Track Record

FINANCE OVERVIEW

Slide: 1

FINANCIAL OVERVIEW

Highlights

◆ Positive operating cashflow

◆ Reducing cost per barrel

◆ Record EBITDA

◆ Improving balance sheet working capital

◆ Bank RBL re-profiled no payments due in 2018

◆ Borrowing Base at $70M

◆ Cash repatriated from Elcrestto Group servicing loan

◆ Self-funded Opuama 8

2018 QUARTER ONE PERFORMANCE


Q1 2018 * VAR v's Q4 2017

Revenue 39.8 143% $m

Opex 8.26 -25% $/bbl

EBITDA 23.9 136% $m

Elcrest Liftings 598,622 109% bbls

Working Capital (Movement) 14.1 48% $m

Cash ** 18.0

* Q1 2018 unaudited financial metrics** Lifting receipt delayed from end March. Cash of $35.6 million following receipt on 3rd April

WORKING CAPITAL


(60.000)

(50.000)

(40.000)

(30.000)

(20.000)

(10.000)

0.000

May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18

Net Current Liabilities

New wells on stream:◆ Nov-17 – Opuama 7

◆ Jan-18 –Opuama 8

Highlights

◆ May 17: Return to Forcados

◆ June 17: Equity raise of $19.5million (net $18.5m); Long to Short term debt included $4.3m

◆ Funding capex programme commenced Q3 2017

◆ As wells brought on stream significant working capital pick up; combination of increasing production and improving prices

◆ Working capital deficit improvement from $49million in May 2017 to $15m by March 2018

◆ Expected to be a net asset position during Q2 2018, ~$50m improvement since peak

EBITDA


Highlights

◆ Shipping with restricted production volumes in Q2 – single well.

◆ Extremely quick tie-in of new wells enabling rapid EBITDA improvement

◆ EBITDA increasingly benefitting from increased production and improving commodity prices

◆ Further ramp up in production during 2018 will result in continued acceleration in EBITDA

◆ Cashflow generation being utilised for further growth opportunities

-7.4

6.7

10.1

23.9

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Q217 Q317 Q417 Q118

EBITDA

0

6000

9000

12000

15000

18,000

3000

Avg. Daily Production

-3000

-6000

6.7

11.912.5

17.3

Opuama 7

NETBACKS & PAYBACKS


Initial production at

7,500 bbl/d

Cost

$18.6mPayback in

90 Days

Opuama 8

First “new” well drilled since 1980 Completed in less than 2 months

Initial production at

6,500 bbl/d

Cost

$14mPayback in

65 Days

13.00 13.00 13.00

0.48

0.39 0.23

2.96

3.04 2.93

2017 SHIP LOGISTICS @22,000 PIPELINE @22,000 PIPELINE @30,000

Opuama Netbacks @ $65 Oil

Royalty Opex Transport Direct Taxes Corporate Costs Net Cash Flow

35.29 36.71 39.61

8.234.86

4.10

5.03 6.99 5.33

600

400

200

0

300

500

700

100

Netback per day (Eland WI) x $’000

USE OF FUNDS


US

$ m

illi

on

14.8

17.2

30.5

7.1

18.5

11.3

24.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

Opuama-9 Opuama-10 Gbetiokun EarlyProduction System

Facilities

Gbetiokun-1 Gbetiokun-3 Ubima Other *

Use of Funds2018 Capex spend $000’s – Q2 onwards (Gross)

Adding4,000–6,000bopd of oil

Adding4,000–6,000bopd of oil

Adding8,000 bopd

of oil

Adding7,000 bopd

of oil

Significant conversion of

contingent resources into

reserves

* Includes licence renewal, Opuama flowstation upgrades, dewatering upgrades and other

OIL AND GAS AIMG&A COSTS COMPARISON


Peer group comprises: Amerisur, Bowleven, Diversified O&G, Faroe Petroleum, Genel Energy, Gulf Keystone, Lekoil, Ophir Energy, President Energy, Providence Resources, Rockhopper Expl, San Leon, Savannah Petroleum, SDX Energy, Serica, Sound Energy and Victoria O&G

0

2

4

6

8

10

12

14

16

18

20

Eland

Annual G&A Cost ($US millions)

4.5

CONSERVATIVE CAPITAL STRUCTURE


Low Gearing – Current Facility

◆ Conservative capital structure: acquisition development work and production restart supported by equity

◆ Debt proportion to increase with production an development (inclusion of producing reserves into the debt facilities)

◆ Low gearing < 10%

Key Debt Parameters

◆ Reserves Based Lending Facility

◆ BB re-determined as at March 2018

◆ 2 Repayments Q1 & Q2 2019 max $17.5m each

◆ Facility ends June 2019

Current Facility Gearing At year end Current With Incr. Debt

E=market value of the firm’s equity $214 $309 $309

D= market value of the firm’s debt $27 $27 $70

V=E + D $241 $336 $379

E/V= percentage of financing that is equity 88.8% 91.9% 81.5%

D/V= percentage of financing that is debt 11.2% 8.1% 18.5%

AMOUNT $27MM drawn under a $35MM commitment - $70MM BBA

PRODUCTION Opuama 1, 3, 7, 8 (2P)

PRICE DECK $53 flat (2017-19)

UPSIDE Price deck; incremental wells & production; export performace

REFINANCING

◆ Strong balance sheet and earnings allowing us to increase leverage through development phase

◆ Ensure Debt/EBITDA and Debt/Equity ratios are below mandated levels

◆ Opportunity to diversify funding source


Timeline & Indicative Headline

Early H2 2018

$150-$200m Headline

3-5 Year Tenor

Ability to Tranche Funds drawdowns

Debt/Equity<30-35% and

Debt/EBITDA <1.5x

INTERCOMPANY DEBT


Intercompany Loans

◆ Borrower: Elcrest (Starcrest 55%, Eland 45%)

◆ Amount outstanding 31.3.18: ~$425M

◆ Purpose: Fund acquisition and development costs of OML40

◆ Repayment: 100% of Elcrest free cash flow to Westport until repaid

◆ Interest: 12% from 1.7.2018

◆ Elcrest Bank Account within Standard Chartered facility and swept to London

◆ Eland retains Financial control until loan repaid in full

ELAND OIL & GAS PLC

ELCREST EXPLORATION AND PRODUCTION NIGERIA

LIMITED

Existing Lender

WESTPORT OIL LIMITED

TAX SHIELDS

Pioneer Status

◆ Period

- 5-year from April 2014

- 3-year to April 2017

- 1-year x 2 to April 2019 (reconfirmation issued April 2017)

◆ Incentive

- Tax exemption for indigenous companies during Pioneer Period

Tax Loss Pool

◆ Tax Shield

- >$500m of unutilised tax losses as at FYE17 (per submitted tax reports)

◆ Effective Tax Rate (Management Estimate*)

- 0% during pioneer period

- 35-40% following 2 years (utilisation of tax losses & CA’s)

- 30-35% following 3 years (utilisation of pre-prod loss & CA’s)

- Headline rate 85% (assuming no further investment/tax shield)

ELCREST TAX STATUS


Existing Tax-balances

AS AT FYE17 AMORT

Capital Allowances 20% p.a.

Pre-production losses (IT April 2014) 20% p.a.

Post production losses (May 2014 TD) 100%

Mgnt estimated utilisation year 1 c. 50%

Taxable losses $295m

Capital Allowances $208m

* Based on NSAI CPR model financials 31/12/2017 incorporating known tax losses and allowances @ $66.54 oil

HEDGING

Reduce uncertainty where possible - introduction of active hedging programme

◆ Policy 30-50% of future oil volumes on a rolling 6 month basis

◆ Minimum required under existing lender agreement is 0%

◆ Use of 'put' options to allow for full upside exposure


$65/bbl50%

Floor PriceProduction hedged Scenarios:

◆ High oil price: exposed to full upside for minimal premium

◆ Low oil price: 50% at $65, 50% at market rate

Outcome

◆ Protects EBITDA and work programme delivery

CONCLUSION

◆ Benefitting from growing production and improving oil prices

◆ Further increases in production as new wells brought on stream strengthening financials further

◆ Strong Quarter One financials underpinning our expectations for 2018

◆ Low cost, high margin netback with continued investment in Opuama wells delivering extremely fast payback

◆ We have repaired working capital deficit

◆ Operating cashflow now directed to underpin continued investment in OML 40 and evaluation of Ubima

◆ Ability to refinance from a position of strength, $150m of debt would be serviceable at the lowest Debt/EBITDA levels of our peer group

◆ Pioneer period continues through 2019 with tax losses and capital allowances shielding our position further

◆ Hedged position in place to take advantage of favourable commodity pricing with a put floor through December 2018


Operations and Development Overview


Slide: 1

ACHIEVEMENTS AND MEDIUM TERM WORK PROGRAMME

◆ Overview of assets

◆ Production history since acquisition, result workovers and infill drilling

◆ Work Programme

◆ Opuama: ongoing infill drilling campaign

◆ Exploration potential near Opuama, the Amobe prospect

◆ Opuama: Flow-Station production capacity upgrade, de-watering pilot and water re-injection

◆ Export pipeline, LACT unit, alternative export route

◆ New Field Developments- Gbetiokun Early Production System and Full Field Development

- Ubima Production Test

◆ Reserves and Resources


ELAND OIL AND GAS PLC


OML 40: Fields, discoveries, prospects and leads UBIMA

Opuama:Results Workover Programme


Slide: 4

OPUAMA-1 RECOMPLETIONRE-ENTRY IN NOVEMBER 2015


Plug set in LS to isolate E2000

LS perforated using 2” guns in D5000 (10 feet interval)

Plugged-off E2000, perforated Long String to access D5000.

Short String and Long String producing D5000

Production from well increasedby ~1,400 bopd

Cost: < $1 million

OPUAMA-3 RE-COMPLETIONWELL RE-ENTRY IN APRIL 2016


Production test 10,000 bopd at zero water-cut

Cost: $2 million

Punched hole in LS and spotted cement across D5000 perforations, shutting off water

Perforated 28 feet of D1000 Upper in LS (orientated perforating).

Perforated 20 feet interval in D2000 in SS orientated perforating


Slide: 7

Drilling: Opuama-7 ST

OPUAMA-7

◆ Well drilled in 1980 and completed in D2000 using cased hole gravel pack.

◆ Gravel pack failed in 1990 after production of only 2.4 MMstb.

SUMMARY


OPUAMA-7ST: RESULTS


OPUAMA 7 ST MONO BORE DRAFT RE-COMPLETION SCHEMATIC REV 2

D2000 (SAND)

ELCREST OPUAMA PROD

OPUAMA 7 ST MONO BORE REV 2DRAFT COMPLETION STATUS

AUTHOR D&C DEPT Date: JUNE. 2017LAST REVIEW Date: 19-10-2017ELECTRONIC VERSION Blessing PeppleCHECKED Sign: Hilary Azoba

ITEM TYPE SIZE PSI REMARK

XMAS TREE CAMERON 11" x 4-1/16" API 5000 PSI WP New

SURFACE SAFETY VALVE CAMERON TBC API 5000 PSI WP New

TUBING HEAD SPOOL CAMERON 11" TOP x 11" BOTTOM 5000 x 5000 PSI New

CASING HEAD Housing CAMERON 10-3/4" x 11" API 3000 PSI WP Existing

CONTROL UNIT CAMERON TBC 5000 x 5000 PSI Not Installed

BEAN BOX CAMERON TBC API 5000 PSI WP Not Intsalled

1/4” Stainless Control Line

4-1/2” x 3.813“ HCS Box x Pin Baker Self Equalizing TRSCSSSSV

4-1/2” Vam Ace Box x Box Hanger

4-1/2” 12.75ppf HCS Box x Pin Gas Lift Mandrels

4-1/2” 12.60ppf HCS Box x Pin Flow Coupling

4-1/2” x 3.81” Vam Top Box x Pin Baker ”CMU” Sliding Sleeve w/ Otis ”X” Profile Shift Up To Open

7” x 5” x 4-1/2” WFD Liner Hanger/Packer (TOL) 5494’ – 250FT O/L

4-1/2” 12.60ppf Vam Top Box Up WFD Float SHOE 7615’

4-1/2” 12.75ppf HCS Box x Pin Tubing

WFD 5” Vam Top Box Up Locator Tie Back Seal Assembly

1522ft

2730ft

3698ft

7402’-7422’;7357’-7387’;7348’-7353’;7338’-7344’

4-1/2” 12.75ppf Vam Ace Pin X HCS Pin X/O Nipple

7” SHOE 5744’

4-1/2” 12.60ppf HCS Box x Pin Flow Coupling

4-1/2” HCS Box X 5” 18ppf Vam Top Pin X/O Sub

4-1/2” x 3.812” HCS Box x Pin Otis “X” Profile Nipple

4-1/2” 12.75ppf HCS Box X Vam Top Pin X/O Sub

4-1/2” 12.75ppf Vam Top Box X HCS Pin X/O Sub

4-1/2” 12.60ppf Vam Top Box x Pin WFD F/C

4-1/2” 12.60ppf Vam Top Box x Pin WFD L/C

4-1/2” 12.60ppf Vam Top Box x Pin Cemented Liner

7620’ TD

6.000” Open Hole

5” 18ppf Vam Top Box x 4-1/2” 12.6ppf Vam Top Pin X/O Sub

OPUAMA-7ST: RESULTS


Opuma-7ST Reservoir data

Production 7,500 bopdMono-bore Completion D2000

Cost: $14 million

◆ Good quality oil bearing D1000 and D2000 sands encountered

◆ D1000 and D2000 reservoirs thinner than prognosed – likely caused by small scale faulting not imaged on seismic

Reservoir Gross Net NTG Phie Swe

D1000 21.49 20.51 0.954 0.251 0.433

D2000 108.1 98.54 0.912 0.245 0.256

Reservoir Summary

Reservoir Gross Net NTG Phie Swe

D1000 21.49 11.78 0.548 0.272 0.332

D2000 108.1 84.29 0.78 0.252 0.2

Pay Summary

Summary Phie Swe Vcl

D1000 0.125 - 0.4

D2000 0.125 0.5 0.4

Cut-offs


Slide: 11

Drilling: Opuama-8 (dual string)

OPUAMA-8: RESULTS

◆ Encountered D3500, D4000 and D5000 but in previously unrecognised fault terrace -deep to prognosis.

◆ Dual completion with D3500 on SS; D4000 and D5000 on LS.

Initial flow rates

◆ D3500 - 3,500 bopd on 40/64” choke

◆ D4000 – 2,800 bopd on 36/64” choke

◆ D5000 - 3,300 bopd on 40/64” choke

◆ Currently producing at about 6,000 bopdfrom D3,500 (SS) and D4000 (LS)


OPUAMA-8: RESULTS


Current production about 6,000 bopd fromD3,500 (SS) and D4,000 (LS) at zero water-cut

Cost: $18.6 million

OPUAMA-8 DUAL AS RUN COMPLETION DRAWING

ELCREST E&P Opuama PROD

OPUAMA 8 AS RUN COMPLETION STATUS

AUTHOR D&C DEPT Date: January, 201LAST REVIEW As Run Re 01 Date: 0 -01-1ELECTRONIC VERSION ary So erallCHECKED Sign:

D4000 (SAND)

ITEM TYPE SIZE PSI REMARK

XMAS TREE CAMERON 11" x 3-1/8" x 3-1/8" API 5000 PSI WP New

SURFACE SAFETY VALVE CAMERON 3-1/8" API 5000 PSI WP New

TUBING HEAD SPOOL CAMERON 11" TOP x 13-5/8" BOTTOM 5000 x 5000 PSI New

CASING HEAD SPOOL CAMERON 13-5/8" API 5000 PSI WP New

CONTROL UNIT CAMERON 3-1/8" x 3-1/8" 5000 x 5000 PSI Not Installed

BEAN BOX CAMERON 3-1/8" x 3-1/8" API 5000 PSI WP Not Intsalled

¼” x 0.49” Incoloy Control Line

204’ 3-1/2” x 2.812” HCS Box x Pin TRSCSSSSV

SPILT HANGER 3-1/2” 9.3ppf HCS Box x Box SPILT HANGER 3-1/2” 9.3ppf HCS Box x Box

3-1/2” 9.3ppf HCS Box L-80 WEGS 8408’

8880’ 3-1/2” 9.3ppf HCS Box x Pin BLAST JT TOP

9-5/8” 47ppf x 3-1/2” 9.3ppf HCS Baker “HS” Single String Packer 8799’

TD 9461’

D5000 (SAND)

3-1/2” x 2.75" OTIS ‘X’ NIPPLE w/3-1/2” 9.3ppf HCS Box x Pin 8390'

D3500 (SAND)

9-5/8” x 3-1/2“ 9.3ppf Baker “GT” DUAL PACKER 8380'

3-1/2” 9.3ppf HCS Box Up L-80 WEGS 9051’

8302’ 3-1/2” x 2.812” HCS Box x Pin Otis ”X” SSD Shift Up To Open

3-1/2” 9.3ppf HCS Box x Pin SLIM HOLE GLM

8490’-8559’; 8604’-8609’ 8631’-8648’

8897.5’– 8914’

9246’– 9266’

3-1/2” x 2.75” OTIS ‘X’ Nipple 9044' w/ 3-1/2” 9.3ppf HCS Box x Pin

3-1/2” 9.3ppf HCS Box x Pin Hydro Trip Pressure Sub 8401'

6-5/8” BTC Pin x Pin x 20ft MOOE

3-1/2” 9.3ppf HCS Box x Pin Telescoping Tubing Swivel Sub

3-1/2” x 2.812” HCS Box x Pin Otis ”X” SSD Shift Up To Open 8876’

6-5/8” BTC Box x 3-1/2” HCS Pin Cross Over Sub

3-1/2” 9.3ppf HCS Box x Pin Telescoping Tubing Swivel Sub

3-1/2” x 2.812” HCS Box x Pin TRSCSSSSV 172’

3-1/2” Vam Ace Pin x 3-1/2” HCS Pin Cross Over Nipple

3-1/2” 9.3ppf HCS Box x Pin F/C

3-1/2” x 2.812” HCS Box x Pin 8335’ Otis ”X” SSD Shift Up To Open

8408’ 3-1/2” x 2.812” HCS Box x Pin Otis ”X” SSD Shift Up To Open

3-1/2” x 2.75” OTIS ‘XN’ Nipple w/ 3-1/2” 9.3ppf HCS Box x Pin 8406'

3-1/2” 9.3ppf HCS Box x Pin BLAST JT BTM 8651’

3-1/2” x 2.75” OTIS ‘XN’ Nipple 9049' w/ 3-1/2” 9.3ppf HCS Box x Pin

3-1/2” 9.3ppf HCS Box x Pin Hydro Trip Pressure Sub 9028'

3-1/2” 9.3ppf HCS Box x Pin Perforated Pup Joint Assy

3-1/2” 9.3ppf HCS Box x Pin Perforated Pup Joint Assy

9-5/8” x 3-1/2“ 9.3ppf DUAL PACKER 8380’

1708’

3053’

3903’

1728’ 3103’ 4157’

3-1/2” 9.3ppf HCS Box x Pin BLAST JT TOP 8475’

9-5/8” x 6” Baker “SC-1” Seal BORE RETRIEVABLE PACKER 9014’

9-5/8” 47ppf Casing Shoe 9451’

3-1/2” 9.3ppf HCS Box x Pin BLAST JT BTM 8919’

3-1/2” x 2.81” OTIS ‘X’ NIPPLE w/3-1/2” 9.3ppf HCS Box x Pin 9022'

9-5/8” 47ppf Casing F/C 9367’

RESULTS WORKOVERS AND DRILLING


CURRENT PRODUCTION 22,500 BOPD GROSS

Opuama 1SS (D5000)7%

Opuama 1LS (D5000)5%


Opuama 3LS (D1000)22%Opuama 7ST (D2000)

22%


Opuama 8LS (D5000)Shut-in

Opuama 8LS (D4000)12%

Opuama Allocated Oil Production by Well April-18 - Opuama Oil Production by well

Opuama-9 Current


OPUAMA-9: PROGNOSIS

◆ Primary target: D1000

◆ Secondary target: D2000 (if un-swept)

◆ Exploration objective: test for presence of oil in shallow‘C’ reservoirs

◆ Appraisal objective: determine present depths of gas-oil and oil-water contacts in E2000.


Opuama-8 Opuama-9

D1000

D2000

D3500

D4000

D5000

E2000

E1000

IFF1

SBF

NBF

IFF3IFF2IFF4

?

?

Oil

Opuama Canyon Shale

OPUAMA-9: RESULTS TO DATE

◆ ‘C’ reservoirs about 70 feet deep to prognosis and water-bearing (residual oil only).

◆ D1000 reservoir 73 feet deep to prognosis but sands good quality and oil-bearing.

◆ D2000 reservoir 44 feet deep to prognosis but sands good quality and upper sands oil-bearing.

◆ Oil-water contact in D2000.4, at similar depth (about 7,385 feet TVDSS) to “original” oil-water contact.

12¼” HOLE SECTION


OPUAMA-9: RESULTS TO DATE 12¼” HOLE SECTION


D1000

Net to gross 88%

Porosity 22.7%

Oil saturation 82%

Plan to perforate 30 feet

(28 feet in Opuama-3)

D2000.6 and D2000.5

Net to gross 73%

Porosity 20%

Oil saturation 77%

Plan to perforate 32 feet

(20 feet in Opuama-3)

Indicative reservoir parameters

Eland Oil and Gas Capital Markets DaySlide: 19 Eland Oil and Gas Capital Markets DaySlide: 19

OML-40 Drilling Programme


OML 40: 2018-20 WORK PROGRAMME


LegendDevelopment Well

Workover Well

Exploration Well

Mob/De-mob

FEED

Detailed Engineering/Procurement

Facilities

Pre-FEED

TECHNICAL WORK PROGRAMQ 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4

2018 2019 2020

OML 40 Development Opu-9 Gbe-1 Gbe-6 Abia-3 Abia-4Gbe-8Gbe-4

Opu-10Opu-11 Opu-13

Gbe-3 Gbe-5Amo-1 Gbe-7 Abia-2 Dudu-1Opu-12

OML 40 DrillingOpu-5 Abia-1

OML 40 Workover

Opuama FacilitiesProduced Water Re-entry Facilities

Opuama Flow-station Capacity Upgrade

Dredging (Opuama 5 Access Way)

Electrification Project

Gbetiokun FacilitiesPIpeline Surveys + ROW Access

Land Acquistion

EIA

Dredging (Gbetiokun 1 Access Way)

Clearing and Destumping (3-8 Slots + Barge + EPF)

Dreging (3-8 Slots + Barge + EPF)

Flowlines

EPF

BRVS

Storage & Shuttle Vessel

Shuttling Operation

Pipeline (Gbetiokun - Adagbassa M/F)

Production Module Installation

Abia-5

Rig Upgrade

2018 DRILLING PROGRAMME

OML 40 - Opuama

◆ Complete Opuama-9 end May (D1000 and D2000 reservoirs); drill and complete Opuama-10 end July (D1000 and D5000 reservoirs)

OML 40 - Gbetiokun

◆ Gbetiokun EPS (re-enter and complete Gbetiokun-1; drill and complete Gbetiokun-3 by Q3 2018; commence production at 15,000 bopd gross using leased floating facilities with oil export by ship along the Benin River to the Benin River Valve Station, prior to injection into the pipeline to Forcados).


2019 DRILLING PROGRAMME

OML 40 – Opuama

◆ Drill and complete Opuama-11 to -13, targeting a) the E2000 oil leg and b) the D3500 and D4000 reservoirs near Opuama-10.

OML 40 - Amobe

◆ Drill Amobe-1 exploration well.

OML 40 – Gbetiokun

◆ Full field development (drill and complete Gbetiokun-4 to -8; install purchased floating production facilities (45,000 bpd capacity) and oil export line to Adagbassa Manifold).


Opuama-10 Prognosis


OPUAMA-10: PROGNOSIS

◆ Located on structural high to north of Opuama-7ST.

◆ Primary targets are D1000 and D5000 (dual completion)

◆ Secondary targets are D3500 and D4000: a second well at this location may be required to produce these reservoirs (2019 drilling)


Opuama Exploration


AMOBELOCATED ONLY 6KM FROM OPUAMA


◆ Nine exploration wells; eight discoveries.

◆ Two fields and three significant discoveries

◆ 371 sq.km 3D seismic on block

Opuama Field

~ 6 km from Opuama

AmobeProspect

REGIONAL DEPTH CROSS SECTIONILLUSTRATING HYDROCARBON MIGRATION PATHWAYS


Base Opuama Channel Cut

Akata Fm

Depth m SS

Opuekeba Amobe

OML 40

Opuama Panel

~100o C

~150o C

Approx. Peak Oil

and Onset

Gas

Conceptual HC Migration paths

Agbada Fm

Vertical to horizontal ratio – 1:1

AgbadaFm

Akata Fm

AMOBE PROSPECT


Amobe-1

D5000

C3000

D3500

D2000

D1000

C4000

D2500

D2000 DEPTH STRUCTURE


Prospect limited 3 Way DipMax Column: ~350ftMax Area 6.4 sq.kmOML40

AMOBE

OPUAMA

D5000 DEPTH STRUCTURE


Prospect limited 3 Way DipMax Column ~370ft.Max Area 6.6 sq.km

OPUAMA

OML40

AMOBE

Prospect limited 3 Way DipMax column ~490ft.Max Area ~7 sq.km.

OPUAMA

OML40

AMOBE

E2000 DEPTH STRUCTURE


AMOBE PROSPECT

◆ Large, low-risk, prospect only 6km from Opuama Flow-Station

◆ Similar to Opuama structurally and on adjoining fault terrace

◆ NSAI: 15 – 78 – 340 MMstb with PoS of 42%

◆ Eland: 15 – 74 – 189 MMstb with PoS of 61%

◆ Plan to drill in 2019


0

50

100

150

200

250

300

350

400

LOW MEDIUM HIGH

PR

OS

PE

CT

IVE

RE

SO

UR

CE

S (

MM

bb

l)

Amobe ProspectRecoverable Resources (NSAI)

OML 40: Installation of LACT Unit


OML 40 LACT UNIT

◆ A LACT (Lease Automatic Custody Transfer) Unit has been installed at Otumara and is being commissioned

◆ The LACT Unit will automatically fiscally measure the quality and quantity of crude that is transferred from Elcrest to SPDC’s custody at the Otumara Manifold

◆ Its installation is a requirement of both the DPR and SPDC and is expected to reduce loss allocations to below 5% downstream of the custody transfer point


LACT UNIT ASSOCIATED FACILITIESLACT UNIT SKID AND CONTROL ROOM – BEFORE INSTALLATION


OML 40 LACT UNITOTUMARA LACT UNIT – TIE-IN TO SPDC MANIFOLD


Alternative Export Route


ALTERNATE EVACUATION ROUTE

BENIN RIVER VALVE STATION(central hub)

◆ Mooring system installed

◆ Export option (during ForcadosOil Terminal shut-in periods)

◆ Injection option (Gbetiokun oil and optional third parties)

SHIPPING


Mayfair- Shuttle Vessel

The Hinde- Storage vessel

FPSO

Benin River Mooring System

BENIN RIVER MOORING SYSTEMWESTMINSTER ALONGSIDE HINDE STORAGE VESSEL AT THE BENIN RIVER TIE-IN POINT


The Westminster

The Hinde

Hinde storage vessel

BENIN RIVER VALVE STATION

◆ Skid-mounted crude oil export pumps at Benin River location for storage of Opuama crude and injection of Gbetiokun into trunk-line to Otumara – Forcados

OIL STORAGE AND INJECTION


BRVSCRUDE OIL STORAGE BARGE

OPUAMA – OTUMARA TRUNKLINE

OIL EXPORT PUMPS

OIL EXPORT PUMPS SKID

INJECTION POINT

PD FLOWMETER

$3.8 MMfacilities capex

Gbetiokun


OML 40 GBETIOKUN FIELD


Gbetiokun

GBETIOKUN

◆ Areally confined, un-faulted, structure located in south east of OML 40.

◆ Discovered 1987 and appraised 1991. 3D acquired 1995 and reprocessed 1999 and 2008.

◆ Oil in twenty stacked reservoir sands.

◆ Excellent quality reservoirs.

◆ Light, under-saturated, oil in deeper reservoirs (D8.1 to E7.0)

◆ Quality of oil (Contingent Resources) in shallower D5.0 and D7.3 reservoirs unknown – requires appraisal.

◆ Initial phase of development produces the deeper reservoirs (D8.1 to E7.0)


D5.0

D7.3

D8.9/D9.0/D9.1

E2.0-E7.0

GBETIOKUNRESERVES ESTIMATES


CASE STOIIP (MMstb) Recoverable (MMstb)

1P 84 35.0

2P 124 56.0

3P 149 75.2

CASE STOIIP (MMstb) Recoverable (MMstb)

1P 103 21.5

2P 114 38.0

3P 130 53.8

Eland, May 2017 NSAI, 31 December 2017

Gbetiokun: Early Production System


GBETIOKUN-1 EPS

◆ Re-enter Gbetiokun-1, drill out cement, and complete, producing E2.0 and E6.0 reservoirs (dual completion)

◆ Drill and complete Gbetiokun-3, producing D9.0 and E7.0 reservoirs (dual completion)

◆ Install floating facilities with 15,000 bpd capacity. Initial export by ship to the Benin River Valve Station.

◆ Eland forecasts an initial facilities-constrained production rate of 15,000 bopd from Gbetiokun-1 and Gbetiokun-3.


GBETIOKUN-1

◆ Target reservoirs: E2.0 and E6.0

◆ Close to crestal position in both reservoirs

Activities

◆ Drill out cement plug to gain access to target E2.0 and E6.0 reservoirs

◆ Perforate target sands

◆ Dual string completion


GBETIOKUN-3


◆ Crestal position in all reservoirs

◆ Dual string completion in D9.0 and E7.0

Activities

◆ Drill build and drop well (max 14 deg)

◆ 12 ¼” through reservoirs to 10,400ft MD

◆ LWD suite + pressures/samples +RST RSCT

◆ Perforate target sands

◆ Dual string completion

WNW ESE

GBETIOKUN EPS

Gbetiokun Field:

◆ Barge-mounted Production facility, nominal processing capacity 15kb/d, complete with process/master control units and utilities (power, air, HVAC, etc.)

◆ Temporary crude oil storage (barge) facility, 30 – 40,000 bbls capacity,

◆ High-volume, low pressure crude oil transfer/loading pumps (temporary, leased)

◆ Crude-oil transfer pipeline from storage barge location to shuttle vessels loading jetty

Benin River Valve Station:

◆ Crude oil storage (barge) facility; about100,000 bbls capacity

◆ Crude-oil export pumps for injection from storagefacility into the Opuama-Otumara Trunk line.

FACILITIES


INJECTION POINT AT BENIN RIVER VALVE

STATION

GBETIOKUN FACILITIES

OPUAMA – OTUMARA M/F TRUNKLINE

Gbetiokun:Development Deep Reservoirs


EPS AND PHASE I DEVELOPMENT WELLSDEEP RESERVOIRS


Phase I Development

GBET-A

GBET-B

GBET-C

GBET-D

GBET-EGBET-F

GBET-G

GBET-HGBET-L

D7.3

D7.4 (Gas)

D8.1

D8.9-D9.0-D9.1

E2.0-E3.0-E4.0-E5.0

E6.0-E6.5-E7.0-E8.0

GBETIOKUNDEVELOPMENT WELLS BY PHASE


Gbetiokun Field Proposed Development Wells

GBETIOKUN FFDOIL PIPELINE TO ADAGBASSA MANIFOLD


Adagbassa M/F

Opuama M/F

Opuama Flow Station

Field Tie-In M/F

Abiala M/F

Gbetiokun Flow Station

GBETIOKUNEPS AND PHASE I PRODUCTION PROFILE


Ubima:Production Testing June 2018


UBIMA

◆ Located in centre of delta, north of Port Harcourt.Dry land.

◆ Relatively low relief rollover structure developed against east-west trending, down to the south listricfault.

◆ Discovered by Shell (Ubima-1) in 1963. Hydrocarbons in six reservoirs between 4,800 and 9,000 feet.

◆ Appraised by three wells drilled on 2D seismic in 1965, 1967 and 1980. (Essentially a single well discovery.)

◆ 3D seismic acquired in 1997.

◆ Awarded to All Grace in December 2013.

◆ Eland farmed-in (40%) as equity partner and ‘Technical and Financial Partner’ in August 2014.


UBIMA-1

◆ The Ubima-1 well is suspended.

◆ It found light oil in the relatively deep F7000 reservoir, oil in the intermediate depth E1000 and E2000 reservoirs and oil in the relatively shallow D1000 reservoirs.

◆ Uncertainties: - STOIIP in D1000 reservoirs (ODT only - depth of OWCs

not known).

- Oil properties, especially the D1.0 reservoirs.

Objectives:

◆ Ubima-1 re-entry and production test three reservoirs

◆ Convert Contingent Resources to Reserves (substantial upside, especially D1.0 reservoirs)


UBIMA-1

◆ Eland will re-enter Ubima-1, drill out cement, and install dual completion, testing F7000 and ‘E’ reservoirs on LS; D1000 reservoirs on SS.

◆ AGR-TRACS has contingent resources (2C) of 31.2 MMstb gross from full field development (four horizontal wells draining D1000 and ‘E’ reservoirs).

◆ Development could act as regional hub.

◆ Exploration potential to east.

PRODUCTION TESTING


LS2. Open sliding sleeve to produceE1/E2 (IGP)

1. Produce F7 reservoir before isolating with plug

SSProduce D1 reservoir (IGP)

UBIMA-1CIVILS WORK (ACCESS ROAD AND WELLSITE)


Reserves & Resources


ELAND OIL AND GAS PLC


Reserves, Contingent Resources and Prospective Resources, Gross

0

20

40

60

80

100

120

140

1P 2P 3P

CPR Gross Reserves (MMstb)December 2017

Opuama Gbetiokun Ubima

40.4

85.8

121.1

48

75

115

0

20

40

60

80

100

120

140

1C 2C 3C

OML 40 Unrisked Contingent Resources (MMstb)(Material STOIIP On Block – EOG Aug 2015)

48

231

539

0

100

200

300

400

500

600

Low Mean High

OML 40 Risked Prospective Resources (MMstb)(Material STOIIP On Block – EOG Aug 2015)

THANK YOU

For Further Information Contact:

2nd Floor20 North Audley StreetLondonW1K 6WE

Tel: +44 207 016 3180

Email: [email protected]

www.elandoilandgas.com

Organisational Growth

ELAND OVERVIEW

ELAND’S ORGANISATION JOURNEY

◆ This time last year minimal human resources. However, the Company was fully planned for growth

◆ For more than five years the company’s organisation model has focused on strict cost control and overhead discipline

◆ It is this focus of low cost, project delivery and partner relationships that, in part, has established the reputation we enjoy today

◆ In short, the Eland team has overperformed

A LOOK BACK


ELAND’S ORGANISATION JOURNEY

◆ The production goals we have set in 2018 and beyond, combined with the new opportunities that we see in the sector and moving towards a two rig operation requires a step change in our organisation;

- Investment in experience drilling personnel and operations staff to support optimize performance in the coming two year programme

- Adding production operations capacity in Nigeria including Production Maintenance Planning and Project Mgt

- Building on our Geoscience capability and fostering staff development between UK and Nigeria

- Maintaining the focus on cost control, but investing in capacity where we see the needs and opportunities

◆ Organisation Capacity is as important a goal in 2018 as any of our other corporate objectives

A LOOK FORWARD


Why Invest?

ELAND OVERVIEW

NEXT 12-MONTH GROWTH CATALYSTS


Opuama Infill Drilling

Completion of Opuama Infill drilling to increase baseline OML 40 production to over 30,000 barrels of oil a day

PRODUCTION APPRAISAL EXPLORATION

Gbetiokun Early Production System

Ubima-1 Re-entry Amobe prospect

Increasing the OML 40 JV’s production by a further 50% to approximately

45,000bopd

Potential moving 31.1million barrels of 2C

Contingent Resources into Reserves

Potentially turning 78 million best estimate

barrels into 2P reserves

SIGNIFICANT 12 MONTH SHARE PRICE DRIVERS

SIGNIFICANT VALUE PROPOSITION

◆ Last 12 months of successful execution further proving Company’s operating track record

◆ 2 year work programme confirmed

◆ OML 40 twenty year license renewal process approved and agreed by all stakeholder. Now awaiting final ministerial consent

◆ Multiple transformational financing opportunities available early H2 2018

◆ Strong operating cash generation with outstanding netbacks. Drilling ROI less than 3-months a well

◆ Material exploration upside with near term production potential

◆ Potential to review dividend policy in light of future financial performance

A LOOK FORWARD


OML 40 FORECAST PRODUCTION PROFILE


Production, Appraisal & Exploration

Documents

Transcript of Production, Appraisal & Exploration