- Average production in 2018 was 8,000 barrels of oil per day ('bopd') net to Elcrest, more than doubling the 2017 average production of 3,934 bopd.*
- 2018 exit production rate of 13,240 bopd net to Elcrest (29,425 bopd gross), a record exit production rate for OML 40 and Eland. Peak record production of 13,986 bopd net to Elcrest (31,081 bopd gross).
- Formal renewal of the 20-year OML 40 licence, allowing the Joint Venture to continue its significant investment into the OML 40 work programme.
- Ubima field tested at rates of up to 2,200** bopd net to Eland (2,500 bopd gross), with commercial production commencing in H1 2019.
- The first phase of Gbetiokun development commenced in H2 2018 with the recompletion of the Gbetiokun-1 well and the drilling of the Gbetiokun-3 infill well.
- The most active development period in the Company's history, running two rigs and drilling continuously throughout 2018 with seven wells drilled, re-entered or completed on the Opuama, Gbetiokun and Ubima fields.
- Lease Automatic Custody Transfer ('LACT') unit commissioned in 2018, reducing hydrocarbon allocation losses from the crude oil delivered from OML 40.
- Total Recordable Injury Frequency Rate of 0.2
- One million man-hours with no Lost Time Injury
Record 2018 revenues net to Eland of $169.2 million.
Maiden annual profit before tax $77.6 million.
Transformation in cash generation with EBITDA at $104.0 million equating to $40 per barrel.***
Successfully refinanced its existing reserve-based lending facility ('RBL') with a new $75m facility which has the potential to increase to $200m (subject to production growth and reserves). In March 2019 the facility increased to $125m through further syndication, based on a redetermined borrowing base of $134m.
Year-end cash position of $43.1m and net debt position of $4.3m.
Post year end NPDC reimbursed the Company $19.3m for drilling costs on Opuama-8 and Opuama-9.
2019 production is expected to average in the range of 14,000 to 17,000 bopd net to Eland (post 15% budgeted downtime)
Ongoing production from Opuama field to be augmented by Gbetiokun and Ubima start-ups
2019 active development work programme targeting four new wells across Opuama -12 and -13 and Gbetiokun -4 and -5
Amobe exploration prospect, the Company's first near-field exploration well, expected to spud in H2 2019, targeting best case gross resources of 78 mmbbls, with a 42% probability of success****
2019 capex guidance of $80-90 million net to Eland
The Company has advised of its Capital Return and Dividend Policy
*Elcrest Exploration & Production Nigeria Ltd has a 45% interest in OML 40. Eland has a 45% equity shareholding in Elcrest. OML 40 net position reflects Elcrest ownership.
**88% economic interest until payback reached
*** Earnings before interest, taxes, depreciation and amortisation
****Netherland, Sewell & Associates Inc CPR report 31 December 2018