H1 2018 Highlights
Strong Operational Delivery
- Record high net production from OML 40 of 11,250 barrels of oil per day*.
- Net production from OML 40 achieved an average 7,716 bopd during the six-month period to 30 June 2018 in comparison to 2,374 bopd in H1 2017, an increase of 225%
- Successful installation of a Lease Automatic Custody Transfer ("LACT") unit
- Ubima-1 appraisal operations commenced in H1 with re-entry of the well
- 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 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)
- First reported profit in the Group's history with $44.7 million post-tax profit in the Period (H1 2017: $22.4 million loss)
- 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)
- 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)
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