Operations and Corporate Update

11 March 2015

Eland Oil & Gas PLC

("Eland" or the "Company")

Operations and Corporate Update

Eland Oil & Gas plc (AIM: ELA), an oil & gas production, development and exploration company operating in West Africa with a principal focus on Nigeria, is pleased to announce the following operations and financing update.

Highlights

· Opuama Field current average gross production over 3,100 bopd (1,395 bopd net to Elcrest Exploration and Production Nigeria Ltd ("Elcrest"), Eland's joint venture company) based on production days.

· Average uptime on Opuama field increased month on month between August 2014 (0.8 producing days; 2.6% uptime) and December 2014 (27.9 producing days; 90.1% uptime) with average Opuama field uptime for Q4 2014 of 73.8% (Q3 2014: 15.7%).

· The OML 40 Joint Venture achieved a 100% uptime of facilities and export pipeline for January and February 2015. Production was shutdown in January 2015 for planned maintenance of the Trans Escravos Pipeline network by SPDC. Consequently, current Q1 average Opuama field uptime of over 85%.

· Opuama field cumulative gross production to date in 2015 is currently in excess of 175,000 barrels of oil (78,750 barrels net to Elcrest). Net deliveries into the export pipeline during Q4 2014 were approximately 225,000 barrels of oil (101,250 barrels net to Elcrest).

· All Conditions Precedent for the committed $35 million of the $75 million Reserve Based Lending facility with Standard Chartered Bank have been met and the bank will complete the registration of its security over the coming days. Marketing for the syndication of the remaining $40 million has already begun and completed commitments are now expected by end April 2015. This timeframe matches the Company's planned work program with drilling due to commence in Q3 2015.

· Cash balance of $8.2 million as at 1 March 2015, with planned receipts of $2.4 million, for settlement of oil cargoes, due in March. No debt has been drawn.

· In January and February 2015, Elcrest completed the loading and sale of 36,290 bbls gross of crude for an average price of $63.35 per barrel through 3 oil liftings from the Forcados Terminal. Furthermore, the March lifting of 23,000 bbls has been completed and the next planned oil lifting of 36,000 bbls is scheduled for early April.

· Well re-entry and workover opportunities have been evaluated and are included within the 2015 work programme. The first of these will be the re-entry of well OPUA-005, which is currently shut-in. This well is expected to have the potential to produce between 400 - 600 bopd and is expected to produce a total of 1.1 to 1.3 million bbls over the life of the well prior to a planned conversion to a water injector. Mobilisation for initial operations is planned for April, with the completion of the workover expected during May.

· The dredging work on OML 40 has been completed and an updated hydrographic survey has been carried out. This has identified a number of high spots to be swept and this is planned for Q2 prior to any rig mobilisation.

· The second re-entry well is the side-track of OPUA-007, which is also currently shut-in. This operation requires abandoning the existing down-hole completion and drilling a horizontal side-track to further drain the D2000 reservoir interval. As the side track requires the use of a drilling rig, it is envisaged that the workover will be carried out as part of the Opuama development drilling campaign, which is expected to begin in Q3.

· The Opuama development drilling programme comprises seven wells with contingent, follow-on, drilling activity through 2016. These seven wells will be drilled from a single surface location. The first two wells in this programme, scheduled for Q3 and Q4 2015, will produce from the D1000 and D2000 reservoirs and will appraise a number of deeper reservoirs. These wells are commercially robust at current oil prices ($50 bbl) with payback times within 6 months at expected production levels of between 4,500 - 5,500 bopd. Subsequent wells in the programme will drain the deeper D5000 and E2000 reservoirs, in addition to the D1000 and D2000.

George Maxwell, CEO of Eland Oil & Gas commented:

"We are incredibly pleased that we have begun this year so strongly, with very high consistency of production from Opuama. Our operational focus has given us this success and provides a consistent revenue stream and the basis for the Company to deliver its 2015 work programme.

We do however continue with our cost reduction program to reduce operating expenses as far as possible and maximise the return on our capex investment.

The planned work programme, with the mixture of re-entry and new development wells, will result in 2015 being a transformational year for Eland with material increases in production and revenues.

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