OPL 452 Option Agreement

8 March 2013

ELAND OIL & GAS PLC

("Eland" or the "Company")

OPL 452 Option Agreement

Eland Oil & Gas plc (AIM: ELA), an oil & gas development and exploration company operating in West Africa with a principle focus on Nigeria, is today pleased to announce that an option agreement has been entered into with Amalgamated Oil Company Nigeria Limited ("Amocon"), for the exclusive right to acquire a 40% equity stake in OPL 452, after completion of a technical evaluation of the license.

OPL 452, situated in the eastern Niger Delta, onshore Nigeria, is a sole risk exploration licence where 100% of the equity is currently held by Amocon. The licence covers a total area of 668 square kilometres with a mix of firm terrain and estuarine areas at the mouth of the Cross River.

The licence area is in close proximity to a large number of oil and gas discoveries. It is situated immediately to the north of the producing oil fields in OML 114 and OML 123 and so is characterised as having a reduced exploration risk. No well has been drilled to date by the licence holder due to a lack of financial and technical capability.

During the option period, Eland will be reimbursed for the costs of evaluation of the license. Should the option be exercised, then the initial work programme will be the acquisition of seismic to be followed by an exploration drilling programme, which would be funded from operating cash flow.

In the event of exploration success, the development could proceed quickly due to the proximity of export infrastructure and management experience of similar developments in the immediate vicinity.

Les Blair, CEO of Eland Oil & Gas, commented today,

"We are delighted to have entered into an option agreement with Amocon for the exclusive right to acquire a 40% equity stake in OPL 452. OPL 452 has the potential to be a significant asset to the Company and we look forward to building on our already successful relationship with Amocon over the coming years."

Background

Eland was established with the intent to acquire and develop upstream assets in West Africa and with a principal focus on Nigeria.

On 31 August 2012, Elcrest Exploration and Production Nigeria Limited, a Joint Venture ("JV") Company in which Eland presently holds a 45% interest, acquired a 45% equity stake in OML 40, situated in the Niger delta for $154 million. NPDC holds the remaining 55% equity interest and is operator. Eland, its JV partner, and the NPDC, are proceeding with the development of this license.

For further information:

Eland Oil & Gas PLC (+44 (0) 207 016 3180)

Les Blair, CEO

George Maxwell, CFO

Edward Cozens, IR

Canaccord Genuity Limited (+44 (0) 207 523 8000)

Henry Fitzgerald-O'Connor

Peter Stewart

Citigate Dewe Rogerson (+44 (0) 207 638 9571)

Martin Jackson

Jack Rich