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Financial & Operational Highlights

Financial & Operational Highlights

Leveraging production success to deliver shareholder value

H1 2018 Highlights

Read full H1 2018 results announcement

View H2 2018 results presentation 

Strong Operational Delivery 

  • Success with Opuama-8 and Opuama-9 in H1-2018 led to record high gross production from OML 40 of 25,000 barrels of oil per day ("bopd") (Elcrest net 11,250 bopd*).
  • Gross production from OML 40 achieved an average 17,146 bopd (7,716 net) during the six-month period to 30 June 2018 in comparison to 5,275 bopd in H1 2017 (2,374 net), an increase of 225%.
  • Successful installation of a Lease Automatic Custody Transfer ("LACT") unit at Otumara providing accurate measurements of crude oil delivery from OML 40.
  • The Ubima-1 appraisal operations, an asset diversification by Eland outside of OML 40, commenced in H1 with re-entry of the well commencing post period end. Appraisal continues.
  • An updated Competent Person's Report ("CPR") for OML 40 in April 2018 increased gross Proved ("1P") reserves by 20% to 39.5 million barrels ("mmbbls") and increased gross Proved plus Probable ("2P") reserves slightly to 83.4 million barrels. 

*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.

Record financial performance

  • Revenue of $67.4 million (1H 2017: $0.8 million) with an average realised price of $69/bbl (1H 2017: $37/bbl).
  • Including the effect of the movement in crude inventories in the Period the value of production was $87.9 million (1H 2017 $20.2 million).
  • First reported profit in the Group's history with $44.7 million post-tax profit in the Period (H1 2017: $22.4 million loss).
  • Strong operating cash flows in Period of $50.6 million (H1 2017: $17.5 million deficit).
  • Net current liabilities stood at $17.1 million at Period end (1H 2017: $35.7 million) although excluding the impact of the short term-bank loan net current assets were $8.2 million (1H 2017: $31.3 million net current liabilities).
  • Direct OML 40 operating costs of $8/bbl (excluding royalties).
  • Liftings in Period of 976,000 bbls (H1 2017: 23,000bbls) generating revenue of $67.4 million (H1 2017: $0.8 million).
  • Cash of $29.8 million at 30 June 2018 (H1 2017: $22.3 million).


Post-Period End - Continued Delivery

  •  At an advanced stage in securing an initial debt facility of $100 million, with an accordion feature to grow to $200 million based on incremental reserves and production.

  • Facility expected to close with $75 million commitment and $25 million due to be syndicated in the near term

  • Opuama-10 production testing in progress with production of 6,898 bopd (3,104 net) achieved during testing operations.  It is expected following completion of testing stabilised initial production from Opuama-10 will be in excess of 5,500 bopd (2,321 net).

  • Aggregate Opuama field production is expected to average above 29,000 bopd (13,050 net) once Opuama-10 testing operating string has been run and cemented.  It is expected that initial gross production from Opuama-11 will be between 4,000 and 6,000 bopd (1,800 to 2,700 net) further adding to Opuama field production.

  • Following the completion of drilling at Opuama-11 and the receipt of regulatory approvals, the OES Teamwork rig will be moved to the Gbetiokun field, where it will re-enter Gbetiokun-1 followed by drilling of Gbetiokun-3 as part of the initial phase of the field development plan.

  • OML 40 twenty-year licence renewal process approved and agreed by all stakeholders. The licence renewal fee has been paid and we await final consent of the Honourable Minister of Petroleum Resources.

  • Ubima well testing operations in progress with the F7000 reservoir tested at flow rates of up to 2,500 bopd.  At present the D1000 reservoir is being tested with the potential to test the E1000/E2000 to be evaluated.

  • Post period end we have received $50.5 million in cash receipts from our July and August liftings totalling 679,000 bbls.  A further 350,000 bbls have been lifted in September which will provide an additional $26.6 million cash when funds are received in October.

  • Current cash balance of $32.3 million.


  • Busy H2 drilling programme following the completion of Opuama-11 to include the re-entry of Gbetiokun-1 and drilling of Gbetiokun-3.

  • Ubima appraisal is currently underway and on success a significant amount of contingent resources to be converted into recoverable reserves. Four wells are currently planned to develop the main reservoirs.

  • H1 2018 has delivered exceptional growth notwithstanding the challenges of the extended drilling programme on Opuama-9.  However, the full benefit of production from Opuama-9, coupled with Opuama-10 and 11 will be realised in H2 2018 resulting in further significant increase to both revenue and cashflow.