Reserve and Corporate Update

27 April 2016

Eland Oil & Gas PLC

 ("Eland" or the "Company")

Gbetiokun-1 Reserves & Resources Update

Net 2P Present Value to Eland of US$ 43.9 million

Financial and management update

Eland Oil & Gas PLC (AIM: ELA), an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, today makes the following announcement.

Reserves & Resources Update

The Company is pleased to announce the results of a Reserves and Resources evaluation on Gbetiokun-1, OML 40, ("Gb-1" or the "Asset"), provided by Netherland, Sewell & Associates Inc. ("NSAI") as at 31 March 2016 (collectively, the "NSAI Report" or the "Report").

Following the successful re-entry of Opuama-3 announced on 25 April 2016, Eland, through its joint-venture subsidiary Elcrest Exploration and Production Nigeria Ltd, together with NPDC, its co-venture on OML 40, intend next to initiate production by means of an Early Production System (EPS) on the Gbetiokun Field in the second half of 2016. This is the initial stage of a planned phased development of the Gbetiokun field. The capex associated with this initial phase is estimated by Eland at $14.5m (Net: $6.5 million) which is roughly equally split between re-entry and facilities costs. Eland's joint-venture subsidiary Elcrest Exploration and Production Nigeria Ltd holds 45% equity in the OML 40 license.

The oil reserves and future net revenue to Eland allocated to Gbetiokun-1 EPS as of March 31, 2016, are as follows:

(1) Net Entitlement is based on treating Eland funding of the Starcrest Nigeria Energy Limited (Starcrest) share of Elcrest E&P Nigeria Limited as a carried working interest, resulting in an Eland participating interest of 45.00 percent for the life of the Gbetiokun EPS and considering no payout of the Starcrest loans resulting from the Gbetiokun EPS.

(2) The economics above are point forward from 31 March 2016 and do not include any Elcrest tax losses or capital allowances to that date. The economics above assume five years of Pioneer Tax Status, up to 1 May 2019.

Furthermore, in this 31 March 2016 Report, NSAI estimates STOIIP in the E2000 and E6000 reservoirs in OML 40 to be 25.87 and 12.77 MMstb respectively, increases of 73% and 45% compared to its previously announced 30 June 2014 evaluation. (NSAI's previous estimates of Gbetiokun STOIIP in OML 40 were 14.91 MMstb in the E2000 reservoir and 8.79 MMstb in the E6000 reservoir.)

In its previous evaluation, NSAI estimated STOIIP in Gbetiokun, within OML 40, to be 81.16 MMstb, with gross Reserves of 4.7 (1P) - 25.8 (2P) - 32.3 (3P) MMstb. Given that NSAI has significantly increased its estimate of STOIIP in the E2000 and E6000 reservoirs in its March 2016 Report, Eland expects its estimate of full field STOIIP and Reserves to also increase when NSAI updates its assessment of Gbetiokun as a whole later this year.

Financial and management update

As at 31 March 2016, the Company had a cash balance of $5.7m, with the last crude oil sale taking place at the end of January 2016. The amount drawn under the debt facility with Standard Chartered Bank remains at $15m. The Company's borrowing base, of its committed $35 million facility, currently stands at $25.4m (previously $35m and re-determined downward on a lower oil price deck) and will be re-determined next in June 2016 where, based on current oil prices, it is expected to improve. This is further enhanced where the lenders can have regard to the higher flow rates from Opuama-3 workover and to the improved reserves base pursuant to the Gbetiokun CPR and the planned Gbetiokun-1 well mentioned in this announcement. Upon completion of this re-determination the Company intends to continue, in conjunction with Standard Chartered Bank, with the syndication of the facility up to $75 million.

Louis Castro, the current CFO of Eland has elected to leave the Company at the end of May after the publication of the Company's 2015 Annual Report & Accounts to pursue other interests. A hand-over will take place over the coming month to Olivier Serra, currently an independent advisor to oil & gas companies. He acted as CFO and Director of Sea Dragon Energy, a Canadian listed E&P company between 2010 and 2015. Prior to this role, he spent 18 years in investment banking, primarily focused on the energy industry. He was the Head of the Oil and Gas Finance department of BNP Paribas, where he supported the growth of Independent Oil Companies. It is planned for Mr Serra to be appointed to the CFO role and Eland board on completion of the hand over and once regulatory approvals have been obtained.

George Maxwell, CEO of Eland, commented:

"Following the recent success of the Opuama-3 re-entry well on licence OML 40, we are now keen to accelerate the first phase of development of the Gbetiokun field with Gbetiokun-1 being an excellent candidate to continue our strategy of cased hole workovers.

We believe that we can commence production before the end of the year, with the Competent Person's Report predicting initial oil flow rates of 7,800 bopd on a gross basis. We are highly encouraged that NSAI calculate a Present Worth net to Eland of almost $44 million for the first phase alone, from an investment of only $6.5 million. Alongside our recently announced CPR for the Ubima field, we believe we are well positioned to materially accelerate oil production and cash flows over the coming twelve months.

Finally, I would like to thank Louis Castro for his contribution to the Company and I wish him well for the future.

For further information:

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

www.elandoilandgas.com

George Maxwell, CEO

Louis Castro, CFO

Finlay Thomson, IR

Canaccord Genuity Limited (+44 (0)20 7 523 8000)

Henry Fitzgerald O'Connor

Nilesh Patel

In accordance with the guidelines of the AIM Market of the London Stock Exchange, John Downey, a geologist and Eland's Chief Technical Officer, who has a BSc from Nottingham University, an MSc from Leeds University and has over 30 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 Report, NSAI 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 GBETIOKUN-1 OIL RESERVES AS AT 31 MARCH 2016

Gbetiokun is a simple anticlinal structure located in the south eastern part of OML 40. The eastern end of the field extends into OML 49. It was discovered by well Gbetiokun-1 in 1987 and appraised by three wells drilled in 1991 (Gbetiokun-2 and Bime-1 and -2, OML 49). 3D seismic data were acquired in 1994-95 and these were reprocessed in 2008.

The field contains light oil in multiple stacked, high quality, reservoirs. Total STOIIP is estimated to be about 150 MMstb. Eland has carried out a complete re-evaluation of the field and has constructed a numerical geological model which includes all the reservoirs. Two of the reservoirs, E2000 and E6000, will be completed and produced in Gbetiokun-1 during the EPS, these having been selected as they are among the larger reservoirs in terms of STOIIP while their oil and reservoir properties are known with a high degree of confidence. Dynamic models of these reservoirs have been constructed, shared with NSAI, and used to generate production forecasts for the EPS.

The re-entry of Gbetiokun EPS is anticipated to comprise cleaning-out of the 9 5/8" casing and 7" liner and complete the well with two (dual) producing strings on the E2000 and E6000 reservoirs. Upon completion of operations, production would be by means of an early production system using leased facilities. Oil export would be by barge down the Benin River to a Manifold on the Opuama to Forcados export pipeline.

The capital cost of the Gbetiokun-1 re-entry and the EPS development is estimated at $14.5 million. Fixed operating costs are estimated at $9.3 million per annum and the variable operating costs at US$3.9 per barrel. Initial gross production will be 7,800 of oil per day (BOPD), with over ten million barrels of oil (gross) being produced over the life time of this well (2P case).

OIL PRICE SENSITIVITIES

NSAI have provided the following sensitivities to varying oil price scenarios. These illustrate undiscounted and discounted (at 10%) revenues net to Eland.

PRICE ASSUMPTIONS

The report, which is dated as at 31 March 2016, was prepared using a Brent oil price of:

 Furthermore the price deck is adjusted for a regional price differential of 76 cents/bbl as Nigerian crudes typically trade at a premium to Brent.

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