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Financial & Operational Highlights

Financial & Operational Highlights

Leveraging production success to deliver shareholder value

2019 Interim Results Highlights


  • Net production from OML 40 achieved an average 9,948 bopd (22,106 gross) during the six-month period to 30 June 2019

  • Liftings in Period of 1,599,000 bbls

  • The first two Gbetiokun development wells were successfully flow tested with cumulative rates up to 5,400 bopd net (12,000 gross).

  • The Gbetiokun Field Development Plan (“FDP”), which was updated following the drilling of the Gbetiokun-3 appraisal/development well has been approved by the Department for Petroleum Resources (DPR)

  • Dredging activities to allow rig access for Eland’s first Exploration well on the Amobe prospect continued during H1 2019. The high-impact, near-field prospect is planned to be drilled in the second half of 2019

  • Updated Competent Person's Report ("CPR") for OML 40 in March 2019 increased gross Proved ("1P") reserves by 8% and decreased Proved plus Probably (“2P”) reserves by 1%, despite record production of approximately 6.5 million barrels (“mmbbls”) of oil (gross) in 2018 *

  • Following success of the Ubima-1 re-entry operations in 2018, updated CPR for the Ubima Field in March 2019 increased gross 1P reserves over sevenfold to 6.2 mmbbls and increased 2P reserves almost fourfold to 9.3 mmbbls

  • Medical outreach programme undertaken within OML40 as part of the Group’s ongoing environmental, social and governance (“ESG”) effort


  • Record revenues of $106.0 million with an average realised price of $66/bbl

  • Operating cash flow before movements in working capital risen to $59.1 million

  • Operating profit sustained at $40.0million

  • Net capital investment of $79m

  • Non diluted Earnings per share (“EPS”) at $0.12 per share

  • Net debt at period-end $30.9 million with $60 million headroom available from Reserve Based Lending (“RBL”) Facility

  • RBL borrowing base expanded to $135 million following re-determination

Outlook ​

  • Performance of the OES Teamwork drilling unit continues to be the key operational issue during 2019.  Production capacity growth has been adversely affected by the OES Teamwork drilling unit performance.  Resultant delays in our drilling sequence have pushed back on-stream dates for Gbetiokun-4 and -5.  The Company has a number of Opuama workover activities in progress to offset the delay in bringing Gbetiokun production on stream.

  • Drilling will continue at Gbetiokun during H2 2019 with Gbetiokun-5 being drilled following completion of Gbetiokun-4. Following completion of Gbetiokun-5 net average production from Gbetiokun is expected to be between 9,000 to 9,900 (20,000 - 22,000 bopd gross).  We maintain our production guidance.

  • Outstanding rig upgrade activities are planned to be completed ahead of drilling Gbetiokun-5

  • The high-impact, near-field Amobe prospect is planned to be drilled in H2 2019.  Amobe carries Unrisked best estimate Gross Prospective Oil Resources of 78.4 million barrels

  • Completion of the Gbetiokun-4 well is expected at the end of September with production commencing through the recently commissioned EPF immediately thereafter.

  • Excluding the impact of the non-cash accrual for the export pipeline the Company maintains its capex guidance at $80-$90 million.
  • Options for an additional rig are currently being matured

  • Ubima extended well test (“EWT”) operations expected to commence in H2 2019. Flow testing for reservoir characterisation will focus on the E1000/E2000

*Netherland, Sewell & Associates Inc CPR report 31 December 2018