OML 40 Reserves and Resources Update

18 April 2018

Eland Oil & Gas PLC

("Eland" or the "Company")

OML 40 Reserves and Resources Update

Eland Oil & Gas plc (AIM: ELA), an oil & gas development and exploration company operating in West Africa with a principal focus on Nigeria, is pleased to announce the results of a new competent persons report ("CPR" or "Report") provided by Netherland, Sewell & Associates Inc. ("NSAI") as at 31 December 2017.

Since the previous full field OML 40 independent CPR which had an effective date of 30 June 2015, the Opuama field has produced 3.86 million barrels of oil. However, the result of the new NSAI report shows a small increase in 2P reserves in OML 40, illustrating how robust and attractive OML 40 is as an investment, and the significant quantity of reserves and resources still to be extracted from the license.

Highlights

Net entitlement is based on treating Eland funding of the Starcrest Nigeria Energy Limitied share of Elcrest E&P Nigeria Limited as a carried working interest, resulting in an Eland participating interest of 45 percent before payout of the loans and 20.25 percent after payout.

Mr George Maxwell, CEO, commented:

"I am pleased to announce an updated CPR for the Company's core OML 40 licence. This shows that over the two and a half year period since the last CPR, total 2P reserves in the licence have slightly increased, net of oil production of 3.9 million barrels. On a 1P and 3P basis, we have seen increases in reserves of 20% and 11% respectively, again a very encouraging sign.

Although the Opuama field has seen a decline in 2P reserves, the Eland technical team is confident that the results of the recent drilling programme and the increase in Opuama oil production will see a reversal of this once the logging results have been fully appraised. Moreover, I am delighted that the increase in 2P reserves from the Gbetiokun field more than offsets the Opuama decline.

I sincerely believe that this updated CPR highlights the significant upside that we still see within our flagship licence OML 40".

For further information:

Eland Oil & Gas PLC (+44 (0)1224 737300)

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

Inside Information

This announcement contains inside information as stipulated under the market abuse regulation (EU no. 596/2014). Upon the publication of this announcement via regulatory information service this inside information is now considered to be in the public domain.

Competent Person

In accordance with the guidelines of the AIM Market of the London Stock Exchange, Pieter van der Groen, a geologist and Eland's Chief Operating Officer, who has a geology degree from Auckland University, a Masters degree in Petroleum Geology from the University of Aberdeen and has over 25 years of relevant experience in the upstream oil and gas industry and who is a member of the Society of Petroleum Engineers and meets the criteria of qualified person under the AIM guidance note for mining and oil and gas companies, has reviewed and approved the technical information contained in this announcement.

In compiling the announcement, the Company has used the definitions and guidelines as set forth in the 2007 Petroleum Resources Management System ('PRMS') approved by the Society of Petroleum Engineers (SPE)

SUMMARY OF OIL RESERVES AS AT 31 DECEMBER 2017

*Net entitlement is based on treating Eland funding of the Starcrest Nigeria Energy Limitied share of Elcrest E&P Nigeria Limited as a carried working interest, resulting in an Eland participating interest of 45 percent before payout of the loans and 20.25 percent after payout.

Since the previous CPR in June 2015, Opuama 2P Reserves have declined by 12 MMstb from 57.4 MMstb to 45.4 MMstb (a reduction of 8.7 MMstb allowing for production of 3.9 MMstb between June 2015 and December 2017). The main changes are:

a) 5.9 MMstb reduction in D1000-D2000 reserves, a consequence of the new 3D dataset and different method of depth conversion (steeper western flank), being partially offset by the increase in the depth of the D1000 OWC (now common with D2000).

b) 6.8 MMstb reduction in D5000 reserves. Its revised reserves figure is broadly consistent with Eland's previous estimate.

c) 2.6 MMstb reduction in E2000 reserves, a consequence of the new 3D dataset and different method of depth conversion

d) Transfer of 3.3 MMstb in the D3500 and D4000 reservoirs from Contingent Resources (June 2015 CPR) to Reserves (December 2017 CPR).

Opuama 8's log and positive production results indicate that the D5000 current reserves are conservative and remapping is ongoing which will be further enhanced by the Opuama 9 and 10 well results. Opuama 9 and 10 are step out well which will test the flank of the structure.

Since the previous CPR, Gbetiokun 2P Reserves have increased by 12 MMstb from 25.8 MMstb to 38 MMstb. The main changes are:

1. Oil in D8900, E1000 and E6500 included as Reserves in the December 2017 CPR (not included previously);

2. Significant increases in Reserves in the E2000, E5000 and E6000 reservoirs compared to the June 2015 CPR;

The above being partially offset by Oil in the shallow D5000 and D7300 reservoirs moved from Reserves (June 2015 CPR) to Contingent Resources (December 2017 CPR) as development of these reservoirs is contingent on results from the earlier wells targeting the deeper reservoirs whose properties are reasonably clearly defined.

SUMMARY OF CONTINGENT AND PROSPECTIVE OIL RESOURCES:

GROSS LEASE CONTINGENT RESOURCES (UNRISKED)

SUMMARY OF UNRISKED GROSS CONTINGENT RESOURCES AS AT 31 DECEMBER 2017

GROSS LEASE PROSPECTIVE RESOURCES (UNRISKED)

SUMMARY OF UNRISKED GROSS PROSPECTIVE RESOURCES AS AT 31 DECEMBER 2017

PRICING ASSUMPTIONS

This report was prepared using a flat price deck of $66.54/bbl. This being the approximate Brent oil price as at 31 December 2017, adjusted for a regional price differential of $0.54/bbl. This is the average Forcados Blend differential the Company received in 2017 following resumption of export from the Forcados Terminal.

GLOSSARY