Annual Report and
Financial Statements
2015
Eland Oil & Gas PLC 
Registered office: 
34 Albyn Place  
Aberdeen 
AB10 1FW 
Scotland
www.elandoilandgas.com
Eland Oil & Gas PLC        Annual Report and Financial Statements 2015 Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
2
Communiqué Associates Limited, Edinburgh www.communique-associates.co.uk
2015 OPERATIONAL HIGHLIGHTS
Eland is an AIM-listed independent oil and 
gas company focused on production and 
development in West Africa, particularly the 
highly prolific Niger Delta region of Nigeria.
OML 40 in Nigeria is Eland’s core asset
83.2
**
mmbbl (gross) 2P Reserves
Opuama and Gbetiokun Fields
 41.2
**
/
****
mmbbl (gross) 2C Resources
OML 40
4,400
bopd (gross)
year end exit rate
84
%
record facilities & pipeline  
uptime on OML 40
Ubima Field CPR published April 2016
2.4
***
mmbbl (gross) 2P Reserves
31.1
***
mmbbl (gross) 2C Resources
*  Operating expenses excluding royalties and adjusting for release of provisions (see Financial Statements, Note 5)
**  Source: Independent Report by Netherland Sewell & Associates Inc. June 2015.
***  Source: Independent Report by AGR TRACS April 2016.
****  Source: Independent Report by Netherland Sewell & Associates Inc. April 2016
+195
%
full year liftings from Elcrest  
at 341,000 bbls crude oil
 24
%
*
reduction in adjusted 
operating expenses Strategic Report Governance Financial Statements Other information
Communiqué Associates Limited, Edinburgh www.communique-associates.co.uk
Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
1
DYNAMIC PROGRESS  
IN 2016
   A highly successful workover was completed, 
with Opuama-3 testing at an initial rate of  
10,548 bopd from two productive zones.
  Eland announced a CPR for the Ubima field 
onshore Nigeria, with gross 2P reserves of  
2.4 mmbbl of oil and gross 2C resource 
estimates of 31.1 mmbbl of oil.***
   Eland announced a CPR for the Gbetiokun-1 
well in OML 40 with gross 2P reserves of  
10.8 mmbbl of oil.***
   Eland announced a successful equity 
placing which raised a total of $18.5 million. 
The planned use of proceeds includes the 
development of Gbetiokun-1 in H2-2016 as well 
as accelerating Eland’s existing asset base.  FINANCIAL HIGHLIGHTS
  Cash and cash equivalents balance of $8.5 million at 31 December 2015.
  In 2015 the Group sold 341,000 bbls of crude oil, generating revenue of 
$18.1 million for the year (2014: $11.7m).
  The consolidated loss after tax for the year was $6.8 million compared 
with $16.3 million for 2014.
  In 2015 Eland embarked upon a cost reduction programme in response 
to lower oil prices, leading to a 24% reduction in adjusted operating 
expenses in 2015*.
  $15m of the Reserve Based Lending (“RBL”) facility with Standard 
Chartered Bank had been drawn down by 31 December 2015. The  
facility is currently capped at $25.4 million and will be re-determined  
on 30 June 2016.
  Elcrest continues to benefit from Pioneer Tax status in respect of OML 
40. Elcrest is exempt from paying Petroleum Profits Tax for an initial 
three year term until 30 April 2017 which can then be extended by a 
further two years on successful application. 
*  Operating expenses excluding royalties and adjusting for release of provisions (see Financial 
Statements, Note 4)
Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
2 Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
3
Strategic Report Governance Financial Statements Other information
Communiqué Associates Limited, Edinburgh www.communique-associates.co.uk
Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
3
OUTLOOK
  Elcrest successfully worked over the Opuama-3 well in April 2016, 
achieving a combined initial flow-rate from two separate horizons 
of over 10,500 bopd under three separate tests. Ultimately this 
is expected to contribute material additional production to the 
Opuama field. The well initiated production from the D1000 
Upper and D2000 reservoirs for the first time, as well as providing 
valuable field data for future workover and development activities. 
  We continue to evaluate the re-entry, completion and production  
of the Gbetiokun-1 well on OML 40 and are targeting a well in  
H2-2016. We believe that this could contribute an initial gross 7,800 
bopd to OML production and produce 10.8 mmbbl of oil over the 
life of field.
  Following the publication of the Ubima CPR in April 2016, we plan 
to accelerate the development of this asset, and we intend to 
achieve early production by re-entering, completing and producing 
well Ubima-1.
  Expected 2016 year-end production exit rate of 7,800-10,000 bopd 
(net to Eland), which will be driven by the phasing of, and flow rates 
from, Gbetiokun-1 and Ubima-1.
  H1-2016 production since February has been adversely affected by 
the shut-in of Forcados terminal but we are expecting a material 
increase in H2 once Forcados re-opens.
  Continue to focus on cost reductions in the current low oil  
price environment.
CONTENTS
Strategic Report
Highlights and Progress ...........................1
Outlook ..........................................................3
Chairman’s Statement ............................. 4
Chief Executive Officer’s Report ......... 6
Eland at a Glance .......................................8
A Year of Steady Production ...............10
Market Overview ...................................... 11
Strategy in Action .................................... 12
Financial Review ......................................20
Key Performance Indicators................ 22
Corporate Social Responsibility ........23
Principal Risks and Uncertainties ......24
Governance 
Board of Directors ..................................26
Senior Management ...............................28
Directors’ Report .....................................30
Corporate Governance Report ..........32
Directors’ Responsibility Statement 35
Directors’ Remuneration Report .......36
Financial statements
Independent Auditor’s Report .......... 40
Consolidated Income Statement ......42
Consolidated Statement of
Comprehensive Income ........................43
Consolidated Balance Sheet ...............44
Company Balance Sheet ......................45
Consolidated Statement of 
Changes in Equity ...................................46
Company Statement of
Changes in Equity ...................................47
Consolidated Cash Flow Statement 48
Company Cash Flow Statement ........49
Notes to the Financial Statements ...50
Other Information
Forward-looking Statements ..............83
Shareholder Information ......................84
Directors and Advisers ..........................85
Glossary ......................................................86
100
%
 
of Opuama crude 
lifted by Shell
7,800
bopd forecast from 
Gbetiokun-1 re-entry Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
4
I am pleased to present my 
inaugural Chairman’s Statement 
for Eland’s 2015 Annual Report. 
It has been another challenging 
year for the sector but we have 
continued to produce from and 
develop our high quality asset 
base in the Niger Delta.
CHAIRMAN’S STATEMENT
The oil price continued to fall last year and the industry 
remains under intense pressure, yet we increased oil 
production in 2015 to a record level from our flagship 
asset OML 40 in the Niger Delta. I continue to believe 
that we have the understanding and expertise within  
Eland to deliver continued growth and positive returns 
for shareholders. 
Last year proved difficult for the oil and gas industry 
globally, as oil prices fell to levels not seen in a 
decade. By the end of 2015 Brent was trading at $37 
per barrel compared to $57 per barrel at the start 
of the year. Strong supply from US shale oil, and 
continued resilience on the part of OPEC in maintaining 
production levels were exacerbated by a reduction in 
global oil demand, largely driven by a slowing Chinese 
economy. This resulted in growing levels of oil stocks 
globally, with the IEA claiming that OECD stocks 
reached over 3 billion barrels by the end of 2015, the 
highest ever. Unsurprisingly this resulted in a global 
slowdown in exploration and development activity. The 
Nigerian oil industry has not been immune to these 
challenging conditions. As the oil industry represents 
the most important sector in the country, 2015 saw a 
sharp slowdown in economic growth and a weakening 
of the Nigerian currency, the naira. 
Within the context of these largely negative conditions 
I believe that Eland performed commendably. The year 
will be remembered as the one when the Company 
really started to deliver as a producer, with total gross 
liftings from OML 40 almost trebling compared to 2014. 
A workover on the Opuama field in November saw 
gross production increase by 50% to 4,400 barrels of 
oil per day, a record high for the Company. This was 
accompanied by an impressive 84% uptime for the 
field during the year. Since year-end the Company has 
enjoyed further success, following a workover on the 
Opuama-3 well with the well testing at rates in excess 
of 10,500 bopd indicating the potential to double year 
end daily production. I believe that this is testament to 
the amount of technical work that has been completed 
in conjunction with our partner on OML 40 and that 
this bodes well for the future with further workover 
opportunities under evaluation.
We also continued to progress our Gbetiokun  
discovery on OML40 and are currently evaluating the 
re-entry, completion and production of the Gbetiokun-1 
well, which has the potential to again double daily 
production. This is planned for later in 2016. During 
the year we also continued to work on the Ubima field 
in OML 17 with a view to capitalising on this highly 
accretive asset, with a well re-entry planned later in 
the year. Again this has the potential to substantially 
increase production whilst appraising further upside in 
the field.
In the context of the proposed work program the 
Company is acutely conscious of the current oil price 
environment and the necessity to manage its resources 
and meet challenges such as the recent shut-down of 
the Forcados Terminal which has adversely affected 
our H1 2016 production, and has instituted a robust cost 
cutting program which will continue to be implemented 
while not prejudicing its ability to execute the value 
enhancing program.
In April 2016, Eland successfully completed an equity 
placing to raise funds of $18.5 million at a price of 
34 pence per share. Initially the company set out 
to raise $15 million but such was the demand from 
Russell Harvey
Chairman Strategic Report Governance Financial Statements Other information
Our Business Model
Expertise
Experienced management 
team with over 40 years of 
in-country experience
+ 
Track record
A team with a history of 
success in identifying and 
developing oil and gas assets
+
Local 
footprint
Operational senior 
management based in Nigeria 
with strong relationships and 
local knowledge
+
High quality 
assets
Significant development 
and exploration upside 
on OML 40 and OML 17 as 
well as attractive growth 
opportunities in Nigeria
 
Maximised 
production
Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
5
investors, the decision was taken to increase the size of the raise. 
It is very encouraging to find such support from existing and new 
institutional investors. The funds will be used to accelerate the first 
phase development of Gbetiokun, as well as to bring forward additional 
production from within the Company’s asset base. 
In 2015 the Group sold 341,000 bbls of crude oil, generating revenue  
of $18.1 million for the year as compared to $11.7 million for 2014. As a 
result of this higher production and reductions in both operating and 
administrative expenses, the Group’s adjusted EBITDA has improved 
from a loss of $19.5 million in 2014 to a loss of $2.5 million in 2015  
(see page 20). 
During 2015 the Group also drew down $15m from its reserves based 
loan from Standard Chartered Bank with cash at the year-end of  
$8.5 million.
At the end of 2015 there were a number of changes to the board as 
part of a periodic refreshment. Both Harry Wilson and Bob Lambert 
retired after a more than three years involvement and we wish them 
well and thank them for their contribution during the formative years 
of the company. In addition to my assuming the role of Non Executive 
Chairman, Gregory Stoupnitzky was appointed as Non Executive 
Director bringing with him a wealth of market and banking experience, 
additive to the skill set on the board.
More recently in May 2016 Olivier Serra was appointed Chief Financial 
Officer designate. He will take over as Chief Financial Officer from Louis 
Castro who retires from this role after the publication of this report.
Eland has adjusted to the current oil price and the planned 2016 work 
program provides a step change in production volumes through 
work-overs and re-entries which will minimise capital expenditure 
whilst driving the company forward to develop the potential of OML 
40, something that is not in question. I look forward to reporting the 
progress that I am confident the company can make during 2016.
Russell Harvey 
Chairman 
27 May 2016
“The year will likely be remembered as 
the one when the Company really started 
to deliver as a producer, with total gross 
liftings from OML 40 almost trebling 
compared to 2014.”  Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
6
2015 has been a milestone year 
in our short history. We have 
successfully implemented a low-
cost well re-entry strategy and 
retained our focus on maintaining 
high levels of productivity from 
our facilities. Overall gross liftings 
increased by 195% to 341,000 
bbls per annum with daily gross 
production ending the year at 
4,400 bopd.
CHIEF EXECUTIVE OFFICER’S REPORT
Eland began 2015 with the focus on increasing production 
and maintaining high productivity rates from its facilities. 
The workover strategy increased production almost 
threefold and productive uptime for the full year resulted 
in a record 84% for 2015. Since the end of the full year, 
although uptime has been negatively affected by the shut-
down at Forcados, potential production rates have seen a 
further doubling again after a very successful workover of 
the Opuama-3 well.
Opuama Well Re-entry Strategy and Production Increase
Late in 2014 we reviewed our Opuama well inventory in an 
attempt to capture low cost and low risk oil barrels through 
re-entry opportunities. We identified a total of six near 
field re-entry opportunities, of which we have completed 
three. Opuama-5 was completed in mid-2015 and did 
not perform as well as expected due to high watercut. 
However, in line with our plans we will utilise this well as 
a future water disposal well. Opuama-1 was completed in 
November 2015 and delivered an additional 1,500 bopd at a 
cost of just over $1.0 million (gross). The next re-entry well, 
Opuama-3, was completed in April 2016 and tested at over 
10,500 bopd (9,500 bopd incremental) at a cost of below 
$2.0 million (gross).
Production Efficiency & Operating Cost Reductions
During 2015 we have made a number of improvements 
to the flow station. Many of these related to improving 
the efficiency, reliability and the safety within the station. 
Modifications were made to the instrumentation system 
to allow this to be operated on compressed air rather than 
produced gas. The diesel generator was converted to dual 
fuel allowing this to run on produced gas, with greater 
efficiency and lower cost than purchased diesel. 
Refurbishment of accommodation has been ongoing and 
is due to complete this quarter, allowing the current house 
boat to be released with significant Opex savings for 2016. 
We have released the barge and tug held on standby for 
line issue failures, thanks to the excellent performance of 
the export line during 2015. The pipeline integrity for our 
section of the line was 100% in 2015.
In addition to the productive uptime improvement 
these actions have also contributed to a reduction in 
adjusted operating expenses of 24% (see page 20). When 
combined with our G&A savings of 27% the overall cost 
base has reduced by 25% year on year (excluding DD&A 
the reduction year on year is 41%). These cost reductions 
include personnel cost reductions for all senior staff and 
contractors.
The overall impact of the cost reductions and the forecast 
increase in production from Opuama-3 provides for opex 
per barrel declining to $11 for OML 40 in the second half  
of 2016.
Ubima Development
In August 2014 we acquired a 40% interest in the Ubima 
field, located onshore in the Niger Delta, just north of Port 
Harcourt within OML 17. We began some work in the field 
late in 2014 and continued this into 2015. This work involved 
confirming the Ubima 1 well integrity and maintenance on 
the wellhead, which was key to our strategy of re-entry and 
Early Production System (EPS) design. 
The Ubima-1 re-entry and Early Production System is 
included in our 2016 work programme. Its commerciality 
was further confirmed as robust by the economics in the 
recent CPR published in April 2016. Production from the 
Ubima Field will diversify the Eland portfolio, bringing in 
a secondary cash flow stream while appraising the larger 
upside on the block, and is a hugely exciting opportunity 
for the Company this year.
Funding for Operations
Like many oil producers the reduction in commodity prices 
has had an impact on our potential borrowing base. During 
George Maxwell  
Chief Executive Officer Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
7
Strategic Report Governance Financial Statements Other information
2015 we have seen the availability of our initial committed 
$35 million debt facility (with Standard Chartered Bank) 
reduced to $25 million. The reduction was due to a 
combination of lower oil prices, market factors impacting 
bank lending and postponement of our infill drilling 
programme as we continued to work with our partner 
NPDC on our low cost workover strategy. The facility will be 
reviewed in June 2016 to include the results of Opuama-3’s 
successful and very value accretive recompletion. 
We remained sufficiently funded throughout 2015 for  
the revised lower capex work programme and as the 
success of this programme increased our produced 
volumes in conjunction with the cost reductions, we 
entered into 2016 with the borrowing base at $25 million 
and $15 million drawn. 
In April 2016, we embarked upon our first secondary fund 
raise since listing the Company in 2012. This was primarily 
to fund the Gbetiokun-1 workover, and the oversubscribed 
raise was successfully completed and placed at a premium 
to the prevailing share price. In total we raised $18.5 million, 
accepting a portion of the oversubscription to allow the 
Company to accelerate the Ubima 1 re-entry. With the 
2016 work programme underway and the equity raise 
completed, we remain fully funded for our 2016  
work programme. 
2015/2016 Work Programme and Budget
The Work Programme and Budget for 2015 had originally 
focused on the infill drilling of Opuama, combined with 
re-entry opportunities in Opuama-5 and Opuama-7. 
The infill drilling was due to commence in Q3 of 2015 
directly following the re-entry programme. A review of 
the work programme took place in Q1 of 2015 to evaluate 
opportunities to increase production without engaging a 
drilling rig, and thereby greatly reducing the cost. Of the 
initial re-entry candidates reviewed (Opuama-4, Opuama-5 
and Opuama-7), only Opuama-5 could be completed rig-
less. We embarked on this project in Q2 of last year and 
delivered Opuama-5 in July. 
While Opuama-5 produced with high watercut, we 
converted this well into a water disposal well. Moreover the 
success in the field operation provided key experiences 
in working with our partner (NPDC) and the operating 
environment with Opuama. Thereafter we developed 
further cased hole re-entries that could significantly 
increase production for a very low capital investment. 
Opuama-1 and Opuama-3 became the next two key 
production targets utilising this approach, with Opuama-1 
delivering incremental gross production of over 1,500 bopd 
in November. A successful re-entry of Opuama-3 followed 
in April of 2016, with incremental production on initial flow 
rates of 9,500 bopd. 
Health, Safety, Environment and Social Responsibility
In conjunction with all our partners we have worked 
closely again this year with our host communities. This 
year, through Elcrest, we have taken the lead in a number 
of community projects within OML 40 and Ubima. 
Eland/Elcrest directly built and funded a new wharf in 
Opuama, and constructed a walkway within the Tsekelewu 
community within OML 40. This establishes a series of 
connected walkways to allow the residents movement 
during the wet season when the land becomes more 
saturated making travel difficult. 
In Ubima community we set up a series of medical clinics 
for general health and eye sight checks. This was also very 
well received by the community. We continue to support 
community contractors ensuring work is allocated to them 
wherever possible so that as we continue with our work 
programme our host communities also continue to benefit 
from these activities.
We completed a number of safety improvements during 
2015 as mentioned earlier. We have not experienced any 
incident within OML 40 or Ubima resulting in lost time 
due to accidents in 2015. The planning we invest into our 
operations is the key to having this continued success.
Outlook
Although we have seen some recovery in the oil price since 
the start of 2016, we remain focused on retaining the cost 
savings that we identified and implemented during 2015. 
The technical work that we completed in 2015 and early 
2016, in particular with regard to Opuama-3, delivered 
levels of technical performance in planning and execution 
that were world class. Coupled with our experience in 
Opuama-1, this continues to pay dividends as we pursue 
the plan for re-entry of Gbetiokun-1 under a similar pattern. 
The CPR for Gbetiokun-1 indicates that it will initially 
produce at 7,800 bopd gross. We are fully funded for 
this re-entry, and expect production to commence in the 
second half of the year. The combination of our recent 
successes and the planned GB-1 and Ubima-1 re-entries 
should increase gross production to around 20,000 bopd 
in 2016, with 10,000 bopd net to Eland. 
There remain some challenges ahead. We have reviewed 
and improved our security plan and will ensure that we 
maintain safe operations of our personnel, partners  
and communities.
Forcados, the current export terminal for OML 40 has been 
shut down since mid-February due to sabotage. Operators 
have been advised by Shell that the terminal will re-open in 
June. However, to alleviate our single export route option, 
Eland has identified two supplementary export routes: one 
route involves a tie-in point on the Benin River for barging 
and another involves a 6 km pipeline into the Escravos 
Terminal directly linked from the OML 40 JV’s export 
pipeline. Both have been added to our 2016 programme 
and we are looking forward to providing Eland with these 
multiple export routes in the future. 
Eland has completed a milestone year in 2015 and 
continued this success into the first half of 2016. We  
have almost trebled expected production rates and 
completed the funding for a programme of a further two 
well re-entries and supplementary export routes over the 
remainder of 2016. We have positioned the Company for 
continued growth, which will allow us to push on with field 
development activity on Opuama, Gbetiokun and Ubima  
into 2017. 
The future for 2016 and beyond remains positive and 
should allow Eland to close the valuation gap with peers 
and deliver superior returns to shareholders. We expect 
2016 to build on the success of 2015, and provide truly 
exciting results by the end of the year. 
George Maxwell 
Chief Executive Officer 
27 May 2016 Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
8
ELAND AT A GLANCE
Eland is focused on building and developing a portfolio of producing 
upstream oil and gas assets in West Africa.
In September 2012, the Company completed the acquisition of a 45% equity stake in OML 40 and listed the 
Company on AIM, part of the London Stock Exchange.
Since its foundation the Company has assembled an experienced Board and management team with extensive  
in-country experience and successful track records in acquiring and developing oil and gas interests. The Eland 
team has a particular knowledge and understanding of development within Nigeria and other locations in  
West Africa.
Eland’s core assets are the OML 40 licence and the Ubima field, both onshore Nigeria. The Group acquired a 40% 
participating interest in Ubima in August 2014.
OML 40
Warri
Bayelsa
Imo
Onitsha
Port Harcourt
Ubima
OUR ASSETS
OML 40
The OML 40 licence is situated within the Niger 
Delta, approximately 75km northwest of Warri and 
covers an area of 498km
2
.
The environment in OML 40 consists of shoreline 
and coastal mangrove swamps. The region is 
lightly populated with indigenous groups living in 
dispersed riverine communities mainly from the 
Ijaw and Itsekiri ethnic groups.
Oil production was re-started in February 2014 
from two existing wells in the Opuama field. Oil 
is exported via the Shell-operated Trans Escravos 
Pipeline network running from the Opuama field 
south along the coastline to the Forcados Oil 
Terminal.
The OML 40 licence area holds gross 1P reserves 
of 32.9 mmbbls, gross 2P reserves of 83.2 mmbbls, 
gross 2C contingent resources of 41.2 mmbbls and 
a best estimate of 254.5 mmbbls of gross unrisked 
prospective resources.*
Ubima Field
The licence area is 65km
2
, located onshore in the 
northern part of Rivers State and has been carved 
out of OML 17, which is operated by Shell Petroleum 
Development Company.
 Updated CPR for Ubima published April 2016.
 Gross 2P reserve estimate of 2.4 mmbbl of oil**
 Gross 2C resource estimates of 31.1 mmbbl of oil.** 
  Significant upside gross 3C resource estimate of  
66.0 mmbbl of oil**
 The Ubima field has 3D seismic coverage (1997) and  
four wells have been drilled in the field between the 
1960s and 1981.
 Hydrocarbons were encountered in all four wells  
in multiple stacked reservoirs.
* Source: Netherland, Sewell & Associates Inc. June 2015.
**  Source: Independent Report by AGR TRACS April 2016.
0 10 20 30 km Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
9
Strategic Report Governance Financial Statements Other information
2012
7.0
2012
27.2
2013
45.4
2013
119.4
2014
75.2
2015
72.3*
2014
254.5
2015
254.5
OFFICE LOCATIONS
Unrisked Gross Prospective Oil Resources mmbbl
*  2.4 mmbbl in Ubima field moved from Contingent Resources to Proved Plus 
Probable Reserves
 Aberdeen, Scotland
Our Head Office is located in 
Aberdeen where our Technical, 
Finance and Human Resources 
teams are based.
 London, England
After listing on AIM we opened  
our London office in early 2013.
 Lagos, Nigeria
Our operational management team 
is based in Lagos. From there we 
manage our operations and work 
closely with our partners in OML 
40, NPDC and Starcrest as well 
as our Ubima partner, All Grace 
Energy Ltd.
FACTS
Gross Contingent Resources mmbbl (OML 40 plus Ubima)
OML 40
Warri
Bayelsa
Imo
Onitsha
Port Harcourt
Ubima  
Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
10
A YEAR OF  
STEADY PRODUCTION
+195
%
full year liftings  
from Elcrest
$18.1m
production revenue
circa
341k
bbls exported
96
%
average uptime for  
OML 40 during 2015*
Significant progress has been made 
sustaining production in OML 40 and 
increasing production through low cost 
intervention activity in a year of low oil prices.
2015 was a year of steady 
production and consolidation  
for Eland. In 2015 our uptime in 
OML 40 was 84%. Little of this 
downtime was associated with 
Eland’s operations and the OML 40 
pipeline to Otumara. The uptime 
average of OML 40 excluding the 
Trans Escravos Pipeline (“TEP”) 
outages was 96% in 2015. The 
majority of the downtime was 
related to outages on the TEP 
downstream of Otumara our fiscal 
transfer point. 
Uptime improved as a result of:
   Pr o-activ e Flo w S ta tion 
maintenance and repair 
   Pr o-activ e c ommunity 
engagement, surveillance  
and security
   Good w orking r ela tionship 
with the SPDC operations 
team operating the TEP (Trans 
Escravos Pipeline) and FOT 
(Forcados Oil Terminal)
In 2015 Eland grew its position  
as an oil producing company 
exporting 340,809 bbls with 
revenue of $18.1 million.
Oil production in OML 40 averaged 
approximately 2,900 bopd prior  
to the Opuama-1 re-entry and 
4,400 bopd post re-entry, early 
November 2015. 
Significant cost savings were 
possible by re-entering without the 
use of a drilling rig and clearing the 
access-way with a swamp buggy. 
Following the success of Opuama-1, 
in April 2016 Eland undertook a 
further workover on Opuama-3, 
which proved even more successful 
than Opuama-1. The Opuama-3 
well tested at extrapolated rates 
of 10,548 bopd from two new 
zones, the D1000 Upper and 
D2000 reservoirs. The workover 
also removed over 1,000 barrels 
of water production from the well, 
significantly reducing the well’s 
water cut. The Opuama-3 rigless 
re-entry and associated production 
cost less than $2.0 million (gross)  
to complete. 
The Gbetiokun-1 re-entry planned 
for later in 2016 is expected to 
flow at initial rates of around 7,800 
bopd. Both the Opuama-3 and 
Gbetiokun-1 re-entries precede the 
significant drilling activity planned 
for OML 40.
In October 2015 Eland relocated  
its Nigerian headquarters to the 
heart of Lagos, providing better 
access to contractors, services and 
other oil companies.
* excluding TEP outages   Nigeria became a member 
of the Organisation of the 
Petroleum Exporting Countries 
(OPEC) in 1971, more than a 
decade after oil production 
began in the oil-rich Bayelsa 
State in the 1950s*.
  Nigeria has the largest oil and 
gas reserves in Sub-Saharan 
Africa*.
  According to the BP Statistical 
Review of World Energy 2015, 
Nigeria has an estimated 37.1 
billion barrels of proved crude 
oil reserves as of January 2015.
  Nigeria is geologically low risk 
with exceptional exploration and 
production opportunities.
  Nigeria produces mostly light, 
sweet crude oil of which the 
majority is exported to global 
markets.
  Forcados blend trades at a 
premium to Brent.
  Numerous undeveloped fields 
exist within Nigeria creating an 
opportunity for partnership with 
indigenous companies.
  Reservoir properties and the 
oil recovery rates (50% +) are 
considered to be amongst the 
best in the world.
  3D seismic, stacked reservoirs 
and deviated wells offer a 
very high chance of success 
(typically 75-90%).
  Large established pipeline 
network with third party access 
and export infrastructure with 
available capacity.
 
PRODUCTION
2.4
mmbbl
RESERVES 
37.1
billion bbls
* Source: Energy Information Administration.
NIGERIA IS AFRICA’S 
LARGEST OIL 
PRODUCER AND ONE 
OF THE LARGEST IN 
THE WORLD.
MARKET OVERVIEW
■ SUDAN  
1.5 billion bbls
■ SOUTH SUDAN  
3.5 billion bbls
■ CHAD  
1.5 billion bbls
■ EQUATORIAL GUINEA  
1.1 billion bbls
■ GABON  
2.0 billion bbls
■ CONGO BRAZZAVILLE  
1.6 billion bbls
■ ANGOLA  
12.7 billion bbls
Source: BP Statistical Review of World 
Energy 2015.
Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
11
Strategic Report Governance Financial Statements Other information  
Benin River
N
OMURO-1
KOKO
TOWN
Oil Field
Shallow
Intermediate
Deep
Gas Field
OML 40 (498  sq.km)
Area of Eastern 3D seismic (1994-95)
Area with no 
3D seismic data is
136 sq.km.
OJUMOLE-1
POLOBO-1
TSEKELEWU-1
GWATTO-1
GWAT-2
AGAGBASSA-1
AMAKUBU-1
UGBO-1
ABIALA-1
TONGARAFA-1
Obagnoro N
Obagnoro
OPUAMA FIELD
Amobe
Polobo N
POLOBO
Polobo SE
Adagbassa-Updip
Ebrohimi
Amakubo W
Ugbo
North
Ugbo
Old Nana 
Dudu
Town E
Gbeokun W
GBETIOKUN FIELD
Tongarafa
SE
Abiala South
Abiala North
Tongarafa
N
Abiala
NE
OML 40 
Prospects and Leads
Depth of
reservoir interval Dominant 
hydrocarbon type
Fields and Discoveries
Field
Discovery
Prospect
Lead
Gulf of Guinea
Tebu
Seismic data
Area covered by 3D seismic data Oil Well Gas Well Well - no data Dry Hole
Wells (predominant result)
Area of Western 3D seismic (1990-91)
Polobo NE
Gbeokun Deep
0     4 km
oil pipeline
Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
12
STRATEGY IN ACTION
OML 40 IS ELAND’S CORE ASSET WITH  
OPUAMA PRODUCING AT RECORD LEVELS  
AND ADDITIONAL NEAR TERM PRODUCTION  
EXPECTED FROM GBETIOKUN.
A Portfolio in a Licence
The OML 40 licence has been 
producing light oil with a low GOR 
for over two years since production 
was re-started. The field has a 
very strong aquifer drive which 
contributes to high recovery factors 
which could ultimately lead to 
increases in recoverable reserves.
Partnerships
The OML 40 partnership 
successfully re-commenced initial 
oil production from the Opuama 
field in February 2014 through the 
re-commissioning of the existing 
infrastructure and the re-opening 
of two wells. Sustained production 
commenced in the autumn of 2014.
Two successful well interventions 
were completed in 2015 (Opuama-1) 
and 2016 (Opuama-3) which 
materially increased production 
while preparing for the OML 40 
drilling campaign.
Reserves
OML 40’s booked reserves are 
found in Opuama in the western, 
and Gbetiokun in the eastern, 
part of the licence. Our primary 
contingent resources lie in the 
Polobo and Abiala fields and 
in addition there are numerous 
prospects and leads across the 
whole of the OML 40 licence.
*Source: Netherland, Sewell & Associates Inc.  
June 2015.
OUR STRATEGY FOR GROWTH
Increase production
Commence development 
drilling programme utilising 
debt facility
Maximise oil  
and gas reserves
Strong focus on bringing remaining 
reserves and contingent resources 
into production through a balanced 
work programme  
Benin River
N
OMURO-1
KOKO
TOWN
Oil Field
Shallow
Intermediate
Deep
Gas Field
OML 40 (498  sq.km)
Area of Eastern 3D seismic (1994-95)
Area with no 
3D seismic data is
136 sq.km.
OJUMOLE-1
POLOBO-1
TSEKELEWU-1
GWATTO-1
GWAT-2
AGAGBASSA-1
AMAKUBU-1
UGBO-1
ABIALA-1
TONGARAFA-1
Obagnoro N
Obagnoro
OPUAMA FIELD
Amobe
Polobo N
POLOBO
Polobo SE
Adagbassa-Updip
Ebrohimi
Amakubo W
Ugbo
North
Ugbo
Old Nana 
Dudu
Town E
Gbeokun W
GBETIOKUN FIELD
Tongarafa
SE
Abiala South
Abiala North
Tongarafa
N
Abiala
NE
OML 40 
Prospects and Leads
Depth of
reservoir interval Dominant 
hydrocarbon type
Fields and Discoveries
Field
Discovery
Prospect
Lead
Gulf of Guinea
Tebu
Seismic data
Area covered by 3D seismic data Oil Well Gas Well Well - no data Dry Hole
Wells (predominant result)
Area of Western 3D seismic (1990-91)
Polobo NE
Gbeokun Deep
0     4 km
oil pipeline
Strategic Report Governance Financial Statements Other information
Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
13
HIGHLIGHTS
OML 40 RESERVES*
Gross Oil Reserves (mmbbl)
Proved Reserves (1P)
Proved + Probable Reserves (2P)
Proved + Probable + Possible (3P)
32.9
83.2
106.5
  Licence area of 498 km
2
, 
located in the Niger Delta, 
approximately 75 km  
north-west of Warri.
  Gross 2P oil reserves of  
83.2 mmbbl (net 22.5 mmbbl) 
are found in the Opuama  
and Gbetiokun fields.*
  494,731 bbls of crude oil  
sold to date.
  Primary gross contingent 
resources amount to  
41.2 mmbbl. Polobo and  
Abiala together total  
33.4 mmbbl (gross).*
  Crude from Opuama is 
transported via a dedicated 
export line injected into  
the Trans Escravos  
pipeline network.
Potential upside
Converting OML 40 leads into 
prospective resources through 
further 3D seismic acquisition, 
detailed studies and drilling 
exploration wells
Positioned to secure 
further opportunities
Structured to secure assets 
with a low entry cost and 
enhance value through expert 
knowledge and development
INCREASING  
SHAREHOLDER  
VALUE Benin River
200m
Gbetiokun-2
Gbetiokun-1
G
Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
14
STRATEGY IN ACTION
OML 40 RESERVES
OPUAMA
Overview
The Opuama field was discovered in 
1972 and a total of 10 hydrocarbon 
reservoirs have been identified. The 
reservoirs contain light sweet crudes 
with API gravities ranging from 47.5° 
in the shallow reservoirs to 37.8° in 
the deep and saturated reservoirs. 
Highlights
  The two production wells on the 
Opuama field are Opuama-1 and 
Opuama-3.
  Additional production of over 
1,500 bopd was achieved from 
reinstatement of the Opuama-1 
long string through a rigless 
workover of the well in  
November 2015.
  The Opuama-3 workover tested 
at a combined gross flow-rate of 
10,548 bopd from two new zones 
in April 2016. This will contribute 
to materially higher rates from the 
Opuama field when the Forcados 
pipeline re-opens.
   Seven new wells are planned, 
including five deviated wells 
with dual completion and two 
horizontal wells with single 
completion. The wells are 
expected to deliver high flow-
rates and high oil recoveries.
  Each new well is expected  
to produce 4,500 to 5,500  
bopd gross.
  Oil recovery factors of well beyond 
50% are expected as the highly 
permeable Opuama reservoirs 
contain very light oil sustained by 
a strong water-drive.
  Average recovery factor of 40% 
as presently assumed in the  
NSAI CPR creates potentially, in 
the medium and long term,  
a material upward reserves 
revision opportunity.
GBETIOKUN
Overview
Gbetiokun was discovered in 1987 
and is located 63 km north-west 
of Warri on the boundary of OML 
40 and OML 49, which is operated 
by Chevron. The field is known 
as Gbetiokun in OML 40 whilst a 
small extension of the field in OML 
49 is called Bime. A total of 20 
hydrocarbon reservoirs have been 
identified in the Gbetiokun field with 
the majority of the OOIP estimated 
to be in eight reservoirs.
Workover operations are planned 
for the Gbetiokun 1 and 2 wells in 
the current Field Development Plan 
(FDP), with Gbetiokun-1 expected 
to commence operations in H2 
2016. Seven additional wells are also 
planned for the development of the 
Gbetiokun field.
Highlights
  Detailed geological studies, 
supplemented with development 
studies were used for the Field 
Development Plan (FDP). The field 
is planned to be produced through 
 
an early production facility. Oil 
export would be by barge via the 
Benin River to the Adagbassa 
Manifold on the Opuama to 
Forcados system. 
  A CPR by NSAI was published  
for Gbetiokun-1 in April 2016,  
with gross 2P reserves of 10.8 
mmbbls, net to Eland of 3.9 
mmbbls (after royalties). Initial 
flow-rates of 7,800 bopd are 
expected.
  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.
  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.
OPUAMA
Gross Oil Reserves (mmbbl)*
GBETIOKUN
Gross Oil Reserves (mmbbl)*
Proved Reserves (1P)
Proved Reserves (1P)
Proved + Probable  
Reserves (2P)
Proved + Probable  
Reserves (2P)
Proved + Probable +  
Possible (3P)
Proved + Probable +  
Possible (3P)
28.2
4.7
57.4
25.8
74.3
32.2
*  Source: Netherland, Sewell & Associates Inc. 
June 2015. Benin River
200m
Gbetiokun-2
Gbetiokun-1
G
Strategic Report Governance Financial Statements Other information
Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
15
OPUAMA 
HIGHLIGHTS
Discovered: 1972
Gross 2P reserves: 57.4 mmbbl* 
Location: 92 km NW of Warri 
Reservoir Depth: 7,600 – 8,900ft
Opuama Gross 2P Oil Reserves
57.4
*
mmbbl
GBETIOKUN 
HIGHLIGHTS
Discovered: 1987
Gross 2P reserves: 25.8 mmbbl* 
Location: 63 km NW of Warri 
Reservoir Depth: 4,500 – 10,000ft
Gbetiokun Gross 2P Oil Reserves
25.8
*
mmbbl
NEW DREDGING 7-8ft dredging
required
for barge
7-8ft dredging required for HWU
FLOW LINES
STORAGE/
OFF-TAKE
VESSEL
WHARF
BARGING
PRODUCTION
BARGE
EXIST.
SLOT
OPUAMA 03
PROPOSED GBETIOKUN 
PRODUCTION FACILITIES Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
16
OML 40 GROSS UNRISKED 
PROSPECTIVE RESOURCES 
(mmbbl)*
low 
estimate (1C)
best 
estimate (2C)
high 
estimate (3C)
80.3
254.5
772.4
Since acquisition the Company has purchased additional off-block well 
data as well as reprocessing 3D seismic on the western flank of the 
licence block.
The various prospects and leads have been mapped in details with the 
reassessment of the potential volumes and risks. Cluster of discoveries  
and prospects have been prioritised on the basis of volume and proximity 
to facilities. Indicative development plans with associated costs are  
being prepared.
There are five more discovered fields in OML 40 apart from Opuama 
and Gbetiokun, the largest being Polobo and Abiala. These assets are 
expected to provide longer term growth from OML 40 following the 
development of Opuama and Gbetiokun.
STRATEGY IN ACTION
OML 40 CONTINGENT RESOURCES
Discoveries Gross Contingent  
Oil Resources (mmbbl)
Polobo 17.4
Abiala South 14.1
Opuama 5.6
Abiala North 2
Adagbassa Creek 1.5
Ugbo 0.6
Total 41.2
*  Source: Netherland, Sewell & Associates Inc.  
June 2015
Community representatives visiting Jakpa on OML 40. Strategic Report Governance Financial Statements Other information
Abiala
Opuama
Gbetiokun
Adagbassa M/F
Opuama M/F
Adagbassa
Opuekeba
Olero
Polobo
Koko
Warri
Custody Transfer Point
ESCRAVOS
TERMINAL
to FORCADOS
TERMINAL
Benin River
Mooring staon
Forcados Terminal
OML40 JV export pipeline
SPDP pipeline to Forcados Terminal 
GB1 export by barge route
Planned diverse barge export route
Otumara p/l extension to 
Escravos Terminal
10km 0
Manifolds
Flow Stations
Terminal
Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
17
STRATEGY IN ACTION
DIVERSIFYING EXPORT OPTIONS
In the interests of enhanced security and 
delivery to market and to overcome issues 
such as the recent shut-down at Forcados, 
Eland is considering alternative export 
routes, supplementary to the existing 
Forcados terminal. 
For the Opuama field in licence OML 40, the first phase of the planned 
diversified route will deploy shuttle barges from the field to a Mother 
vessel on the Benin River and onwards to export facilities. Phase Two 
sees the oil loaded at the Benin River manifold mooring system.
The Gbetiokun-1 well location near the Benin River Production allows for 
anticipated new production to be exported down the river to a new tie-
in point to be built into the Forcados pipeline system. Notably, Eland and 
the licence partners also plan to develop an additional export route by 
way of barges and storage facilities to a supplementary export facility as 
well as a pipeline extension from Otumara to the Escravos Terminal. The 
diversification of oil export from OML 40 to both Forcados and Escravos 
will enhance the resilience of the Company should any one of the two 
export routes be unavailable in the future.
KEY BENEFITS
  Increased capacity to 
match projected higher 
production volumes
 Operational flexibility
 Risk reduction 
  Impr o v ed c onsis t enc y  
of delivery to market
DELIVERING OIL TO MARKET: 
PROPOSED SHUTTLE BARGE ROUTE Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
18
The Ubima Field licence area covers 65 km
2
. It has been carved out of 
OML 17 which is operated by Shell Petroleum Development Company. 
Eland plans to initiate an Early Production System in 2016.
STRATEGY IN ACTION
UBIMA
Ubima Highlights
  40% interest in the Ubima Field 
acquired from All Grace Energy 
Limited in August 2014.
  Initial farm-in fee of $7 million; 
contingent production payment 
of $3 million payable following 
production of 2,000 bopd gross 
over a thirty day period.
  Eland is the Technical and 
Financial Partner on the field 
development and production 
operations.
  Eland is entitled to 88% of 
production cash flow from 
Ubima field until costs have 
been recovered.
Ubima Opportunity
  2C resources of 31.1 mmbbl 
gross*, with net resources of  
13.1 mmbbls to Eland
  A CPR published in April 2016 
assumes an early production 
system (EPS) on Ubima with 
gross 2P reserves of 2.4 mmbbls, 
net to Eland of 1.1 mmbbls.
  Well appraised field with four 
wells drilled: Ubima 1, 2, 3 and 4.
  Licence fully covered by 3D 
seismic which was acquired 
in 1997 over target reservoirs, 
covering 64% of the total area.
  Excellent infrastructure with 
nearby roads, airport and oil and 
gas pipelines. Low entry cost for 
land based operations using  
conventional technology.
Ubima Development Plan
  Eland has proposed a phased 
development approach with 
plans to do; 
 –   Ubima 1 Re-entry: Planned 
dual string completion and an 
early production system (EPS) 
to be installed at the Ubima 1 
well site. Evacuation will be 
via trucking. 
 –   Full Field Development: The 
results of the EPS will be used 
to optimise this development; 
four wells are planned to 
develop the main reservoirs.* 
  New wells on Ubima are 
expected to deliver high flow-
rates and high oil recovery 
through accurate well placing 
as a result of state of the art 3D 
seismic imaging and modern 
drilling techniques. *  Source: Independent Report by AGR TRACS  
April 2016.
Opuama-3 flow test: preparations at the flowstation. Strategic Report Governance Financial Statements Other information
Discovered: 1964
Gross 2P contingent resources: 31.1 mmbbl* 
Location: 14 km North of Port Harcourt 
UBIMA CONTINGENT GROSS RESOURCES* (mmbbl)
low estimate (1C)
best estimate (2C)
high estimate (3C)
20.6
31.1
66.0
Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
19
* Independent Report by AGR TRACS April 2016.
UBIMA 
HIGHLIGHTS
40
%
interest acquired  
August 2014 
88
%
initial production cash  
flow entitlement 
13.1
mmbbl net contingent 
resource to Eland
OBELE
OGBODO
ISU
OTAMINI
UMUECHEM
OLO
MINI NTA
OGBELLE
EGBOLOM
IMO RIVER
NKALI
AGBADA
OBIGNO NORTH
OBIGBO 
UKPICHI
AMAPU
AHIA
EREMA
EREMA EAST 1
RUMUEKPE
AKPOR
APARA
Izomini 1
Nroo 1
Obuor 1
Amadioha 1
Onyika 1
Alaoma 2
Alaoma 1
Owu 1
Ikwegbu 1
Apani 1
Alubi 1
Ogwugwu 1
4
3
Elele 1
2
Umuanwa 1
Walima 1
Ola 2
Ola 1
Odagwa 1
Nkali 3
Isoba 1
Emohua 1
Odegu 1
Ndele 1
Ogbakiri 1
Tema 1
Tema 2
Isia 1
Ebubu 10
Tai 3
Bangham 2
1
Evo 1
23
Nzuaku 1
7
Umuechem 6,23 46
17
OML 17
OML 11
OML 53
OML 23
OPL 2006
NIGERIA
Olo 3
Olo 2
Ihugbogo 1
Achira 1
Erema East 1
Erema West 1
7 13
3
1
2 ST 2
Alimini 1
OML 22
OML
58
OPL 234
OML
21
OML
16
UBIMA FIELD
PORT HARCOURT
2
1
Omerelu 1
Ahia
Flow-station
0 10 Kms Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
20
Revenue for the year was  
$18.1 million, up from  
$11.7 million, reflecting a full  
year of production with  
enhanced uptime. 
FINANCIAL REVIEW
Review of 2015
Revenue for the year was $18.1 million, up from  
$11.7 million, reflecting a full year of production with 
enhanced uptime. 
Operating expenses of $18.0 million (2014: $18.2m) 
include the release of a provision of $2.3 million (2014: 
$6.0 million release) for amounts due to a service 
provider for logistical and general support services for 
which no invoices have been received by the Group 
since 2011 (see note 5). After adjusting for the release 
of the $2.3 million and $6.0 million in 2015 and 2014 
respectively, and excluding royalties of $3.3 million in 
2015 ($1.8 million in 2014), operating expenses have 
fallen by 24% during 2015.
Based on consolidated operating expenses and after 
adjusting for the release of $2.3 million noted above, 
excluding DD&A and royalties, and based on production 
for 2015 of 328,689 barrels, the opex per barrel for  
2015 was $34/bbl compared with $181/bbl for 2014.  
As we continue to increase production through further 
interventions and drilling in 2016, we expect this opex 
per barrel to reduce significantly.
Administrative expenses of $6.4 million during 
2015 were down by some 27% compared with the 
$8.8 million incurred in 2014 and we have continued  
to target further savings in 2016.
The adjusted loss before interest, tax and DD&A has 
fallen from $19.5 million in 2014 to $2.5 million in 2015, 
after adjusting for the provisions set out above.
Finance costs amounted to $3.3 million during 2015 
($1.5 million in 2014) reflecting the costs of our reserves 
based loan (“RBL”) from Standard Chartered Bank 
(“SCB”).
The Group’s consolidated balance sheet shows net 
assets of $168.0 million (2014: $169.3 million). Within 
this total, non-current assets represented $198.2 million 
(2014: $200.3 million), current assets were $13.8 million 
(2014: $19.8 million), current liabilities $20.8 million 
(2014: $38.5 million) and non-current liabilities 
$23.2 million (2014: $12.3 million). Hence, net current 
liabilities have fallen from $18.7 million in 2014 to 
$7.0 million in 2015 whilst the increase in non- current 
liabilities of $10.9 million largely reflects the draw-down 
of $15 million of the RBL by the end of 2015.
The Group began the year with consolidated cash and 
cash equivalents of $15 million and finished the year 
with $8.5 million having drawn down $15 million (net 
proceeds of $13.5 million) from the RBL facility. The cash 
was invested as to $7.0 million in operating activities 
and $13.1 million on enhancing the Group’s assets 
through development and evaluation expenditure.
Louis Castro
Chief Financial Officer Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
21
Strategic Report Governance Financial Statements Other information
Key Strengths
    Technical and operational 
capability to increase 
production significantly through 
lower capex workovers 
     Ext ensiv e r eserv es and 
resources which will produce 
further capacity to fund the 
future development of the 
Group’s assets
     Supportiv e shar eholder base
    Strong banking and offtake 
relationships
Key Financial Highlights
    Cash and cash equivalent 
balance of $8.5 million at  
31 December 2015 
    In 2015 the Group sold 
341,000 bbls of crude oil, 
generating revenue of 
$18.1 million for the year  
(2014: $11.7 million)
    The consolidated loss before 
tax for the year was $9.6 million 
compared with $16.3 million  
for 2014.
    During 2015 Eland embarked 
upon a cost reduction 
programme in response to 
lower oil prices, leading to 
a 24% reduction in adjusted 
operating expenses compared 
to 2015.
    $15 million of the Reserve Based 
Lending facility with Standard 
Chartered Bank had been drawn 
down by 31 December 2015. 
    Elcrest continues to benefit 
from Pioneer Tax status in 
respect of OML 40. Elcrest is 
exempt from paying Petroleum 
Profits Tax for an initial three 
year term until 30 April 2017 
which can then be extended 
by a further two years on 
successful application.
The RBL, on which SCB has committed an initial $35 million, has a 
maturity of four and a half years from 31 December 2014. The amount 
available to Eland under the RBL is subject to a cap determined by 
six-monthly reviews. The borrowing base amount is calculated on OML 
40 production and stands currently at $25.4 million. Drawdowns to 
date amount to $15 million and, as such, the current available facility is 
$10.4 milllion in accordance with the terms of the RBL, with the next 
redetermination due at the end of June 2016.
2016 Financial Developments
The Company has recently completed a placing of $18.5 million gross 
with existing and new investors. The placing was done at a premium to 
the prevailing share price and was over-subscribed. 
In addition, in part to cover for any further potential interruptions at the 
Forcados Terminal, the Company has made forward sales to its offtake 
partner, Shell Western Supply and Trading Limited, which has yielded a 
further $3 million.
Cash in hand immediately after the placing and forward sales amounted 
to some $25m. A part of these funds will be applied to working over  
the Gbetiokun-1 well in H2-2016, and also to advance plans at the  
Ubima field.
Louis Castro 
Chief Financial Officer 
27 May 2016
“Cash in hand immediately after the  
placing and forward sale agreement 
amounted to some $25m.”  Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
22
KEY PERFORMANCE INDICATORS
HEALTH AND SAFETY
We conduct our activities to 
international health and safety 
standards and do our utmost 
to provide a safe working 
environment for our employees 
and contractors.
ENVIRONMENT
We aim to minimise our impact 
on our local environment, using 
water and energy prudently, 
recycling waste and planning 
our oil and gas developments 
responsibly.
BUSINESS ETHICS
We believe that personal and 
business integrity is an essential 
part of delivering a strong 
financial performance and we 
expect our employees to operate 
to a high ethical standard.
The Group has 
outlined below  
the Key Performance 
Indicators which are 
used to provide an 
understanding of  
the development  
and performance of 
the business.
Since listing on the London Stock 
Exchange in late 2012, the Group 
has been tracking the growth of 
its reserves and resources base for 
OML 40 via independent third party 
consultants. We continued to re-
evaluate this data through detailed 
study, seismic re-processing and 
drilling and workover operations 
during 2015. The results are shown 
in the graphs alongside for both 
reserves and resources and are 
compared to the 2014 position. 
In this report we also include 
reserves and resources estimates 
for the Ubima field, which has 1P, 2P 
and 3P classified reserves for the 
first time. 
These indicators highlight the 
increase in the gross reserves and 
resources in both OML 40 and the 
Ubima field. 
The key financial metrics for the 
business include comparison for 
Production/Liftings, Revenue 
and adjusted EBITDA. The tables 
alongside show the comparison 
between 2014 and 2015 Actual 
Performance.
OUR VALUES
RESERVES AND RESOURCES
OML 40
LIFTINGS
ADJUSTED EBITDA*
FINANCIAL REVENUE
UBIMA
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2015
2015
2015
2015
2015
2015
2015
2015
2015
2015
2015
38.7
 115,722 
(19.5)
11.7
81.4
104.8
41.2
33.9
32.9
 340,809 
(2.5)
18.1
83.2
2.4
106.6
3.3
41.2
31.1
Gross 1P Oil Reserves (mmbbl)
(mmbbl)
 ($US million)
 ($US million)
Gross 1P Oil Reserves (mmbbl)
Gross 2P Oil Reserves (mmbbl)
Gross 2P Oil Reserves (mmbbl)
Gross 3P Oil Reserves (mmbbl)
Gross 3P Oil Reserves (mmbbl)
Gross 2C Oil Reserves (mmbbl)
Gross 2C Oil Reserves (mmbbl)
0.8
*  Adjusted loss before interest, tax and DD&A 
after adjusting for release of provisions  
(see Financial Statements, Note 4) Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
23
Strategic Report Governance Financial Statements Other information
CORPORATE SOCIAL RESPONSIBILITY
Elcrest Exploration & Production Nigeria Limited, in 
partnership with both NPDC is successfully carrying out the 
following projects to the host communities (Opuama and 
Tsekelewu) in line with the Corporate Social Responsibilities 
(CSR) policy of the joint venture in OML 40.
Opuama
Within the Opuama community there has been the successful provision 
of portable water via the drilling of a borehole and the construction of an 
overhead steel storage tank and water treatment plant. There has been 
further work within the area with the construction of a Cottage Hospital 
and the building of a permanent jetty to be completed in 2016.
HUMAN RESOURCES
Our employees are at the heart 
of our business and we take our 
responsibilities for their welfare, 
training and development seriously.
COMMUNITIES
We are working closely with the 
local communities in which our 
operations are located to ensure 
that they benefit and participate in 
our strategy for growth.
Tsekelewu
Tsekelewu has also been provided 
with portable water, overhead steel 
storage tank and water treatment 
plant to service the community. 
There has been the successful 
assembly of a Civic Centre for the 
area, and ongoing construction 
of a walkway that is set to be 
completed in the next few months.
Continued Community Support
Elcrest provide continued 
community support within the 
areas in which we are operating. 
This day to day support varies from 
the provision of contracts of marine 
equipment, diesel, potable water, 
security to community contractors 
in order to support projects. We 
also care for these communities 
by way of the donation of various 
items and funds during their 
cultural activities, as well as gifts  
at Christmas.
The cottage hospital at Opuama under construction
A new, permanent jetty under construction
Overhead steel water storage tank Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
24
PRINCIPAL RISKS AND UNCERTAINTIES
The Directors are responsible for the effectiveness of the Group’s risk management activities and internal control 
processes. As a participant in the upstream oil and gas industry, the Group is exposed to a wide range of risks in 
the conduct of its operations.
A summary of the Group’s key risks as identified by the management are outlined within this report together with 
the mitigation plans currently employed by the Group. The responsibility for risk review and management remains 
a function of the full Board.
The process of risk management is continually reviewed by the Board and management and complies with the 
practice as set out in the Quoted Companies Alliance (‘QCA’) guidelines.
This section on Principal Risks and Uncertainties should be read in conjunction with the critical accounting 
judgements and estimates which are set out in note 3 to the Financial Statements.
Principal Risk Detail Mitigation
Exploration & 
Appraisal Risk
The Group’s strategy is driven by the acquisition, exploration and 
development of oil and gas assets in Nigeria. There are risks inherent 
in exploration and development of oil & gas reserves and resources. 
Appraisal results of discoveries are also uncertain. Exploration, 
appraisal and development activities, involving the drilling of wells 
within a field, may be unpredictable and may not result in the 
outcome planned, targeted or predicted. Only by extensive testing 
can the properties of the entire field be understood.
The Group has a very experienced management team with 
considerable technical experience in Nigeria.
The technical programmes and budgets are the responsibility 
of the Technical & Reserves Committee of the Board and 
a rigorous review process is undertaken by the committee 
when reviewing and approving the work programmes.
Corporate 
Governance & 
Ethical Conduct
The Group operates in West Africa and in Nigeria in particular. 
Nigeria is one of the highest ranking countries in the OECD table for 
risk of bribery and corruption.
The Group has introduced a Code of Conduct manual which 
provides for full compliance and transparency throughout 
the Group’s operations and has obtained membership of the 
QCA.
A full programme of compliance and training for the UK 
Bribery Act and the US FCPA has been implemented by the 
group.
Environmental 
Risks
Pollution arising from drilling and/or production operations, which 
could result in loss of reputation, financial loss and the risk of loss of 
life due to process or equipment failure.
The Group operates on an industry best practice basis for all 
drilling and production operations. The Group performed a 
full EIA on OML 40 prior to the acquisition and prior to any 
remedial work being undertaken on existing facilities in OML
40. The Group has developed a system and process to plan 
drilling operations with all contractors and suppliers prior to 
arrival at each well location.
Health & Safety A significant event could impact the reputation of the Group and/
or the safety of the Group’s employees and contractors. The Group 
operates in Nigeria which has experienced incidents of robbery and 
kidnap in recent years.
The Group performs a full security review and risk 
assessment for each permanent and temporary location in 
which it operates. The Group also fully engages with the 
host communities in which it operates to minimise the risk to 
employees and equipment in these areas. The Group has a 
detailed security plan in place for each site and these plans 
are continually reviewed as the risk levels change. A risk 
management plan is prepared for each project prior to any 
active operations.
Loss of Key 
Employees
Loss of key individuals could cause a delay or have an adverse 
impact on the Group’s plans and operations.
The Group has a competitive compensation package that 
is reflective of market conditions for these key roles and is 
constantly under review as conditions change. The Group 
operates a long-term incentive plan for key employees. The 
Group has also undertaken a succession planning review of 
these key roles.
Geo-political risk Nigeria continues to face political and security issues, legal 
uncertainties and threats such as terrorism aimed at de-stabilising 
and undermining the orderly operations of producers and the 
effective rule of central government.
The Group closely monitors these issues and threats to 
minimise the impact upon our operations as much as 
possible. We monitor the situation from the perspective of 
safety and security, with contingency plans in place and 
tested regularly. Through our contacts in governments 
and industry, as well as through specialist advisors, we 
continuously monitor and evaluate the potential impacts 
on our business arising from changes in the geo-political 
environment.
Oil Price A significant fluctuation in the oil price could have an impact on the 
Group’s plans and expected returns.
The Group is focused on effective working capital 
management to ensure that programmes and plans are 
achieved. These plans are under constant review and will be 
delivered to the extent that sufficient liquidity is maintained 
within the Group. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
25
Strategic Report Governance Financial Statements Other information
Principal Risk Detail Mitigation
Community 
Relations
Host communities could cause disruption to operations and 
adversely impact production.
The Group works closely with all host communities to ensure 
that engagement is achieved at all levels. Agreements with 
host communities are in place or under negotiation to 
ensure harmonious working relationships. The Group is also 
committed to a number of community related projects to 
enhance the wellbeing of these host communities.
Production 
Operations
Production operations involve risks common to the industry, 
including oil spills, pipeline or terminal disruption such as the recent 
shut-down of Forcados, explosions, fires, equipment damage or 
failure and natural disasters. In the event that any of these occur, 
environmental damage, injury to persons and loss of life or failure to 
produce oil could result.
The Group employs an experienced management team with 
a proven track record in managing oil and gas production 
and drilling operations throughout West Africa and in 
particular in Nigeria. Contingency plans such as forward 
sales or alternative evacuation routes would be put in place 
to allow oil production and revenue to continue should 
there be a prolonged disruption to the producers, facilities, 
pipeline or other disruptions impacting oil evacuation.
Failure to obtain 
financing in the 
future could 
materially 
adversely 
impact the 
performance of 
the Group
The Group’s business necessarily involves significant capital 
expenditure. If the Group is required to invest further capital in 
pursuit of additional opportunities, it may need to seek further 
external debt or future equity financing. There is no guarantee that 
such additional financing, if required, will be available on acceptable 
terms at the relevant time. Furthermore any additional debt financing 
may involve restrictive covenants, which may limit or affect the 
Group’s operating flexibility.
The Group currently has access to sufficient cash resources 
and debt to commence the development of OML 40. Full 
syndication of the existing debt facility is required to fully 
exploit the 2P resources within the planned time frame. 
However, should such debt sources be unavailable to the 
Group, the 2P resources can still be fully developed albeit in 
a much extended time frame. The Group remains focused 
on new opportunities and will review and evaluate these 
opportunities in line with the funding available to pursue 
these ventures at the appropriate time. Given the fall in oil 
prices, the group has identified and pursued lower capex 
developments to increase production which do not require 
higher levels of debt or other financing. 
Under or over 
accrual of 
amounts due to 
the JV partner
In line with the Joint Operating Agreement (“JOA”), the Group is 
responsible for its share of expenditures incurred on OML 40 in 
respect of its participating interest, on the basis that the operator’s 
estimated expenditures are reasonably incurred based on the 
approved programme and budget.
Management continually monitor the amounts being incurred 
or proposed by the JV partner to be incurred on OML 40. 
Where management disputes such expenditures on the basis 
that they do not meet these criteria, management accrues at 
the period end for its best estimate of the amounts payable 
to the operator. The amounts recognised as accruals as at 
31 December 2015, therefore, reflect management’s best 
estimate of amounts that have been incurred in accordance 
with the JOA and that will ultimately be paid to settle its 
liabilities in this regard.
Licensing and 
other regulatory 
requirements
The Group’s direct and/or indirect intended future operations 
may be subject to petroleum leases, licences, production sharing 
contracts, regulations and approvals of governmental authorities 
for exploration, development, construction, operation, production, 
marketing, pricing, transportation, storage and lifting of oil, taxation, 
and environmental and health and safety matters. The Group cannot 
guarantee that such documents applied for will be granted or, if 
granted, will not be subject to potentially onerous conditions. Any 
changes to licences, regulations and approvals, or their availability 
to the Group or its associated companies may adversely affect the 
Group’s assets, plans, targets or projections. In particular, in relation 
to the Group’s OML 40 licence, the licence has a current expiry date 
of 2019, which is extendable upon successful application.
The Group’s activities and operations are subject to various 
rules, regulations, laws and custom in all countries in which 
we are present. The Group always will remain compliant 
with these rules, laws and regulations when undertaking its 
activities and works to respect local customs in these areas. 
The Group has employed a highly skilled team to manage 
the activities and mitigate any negative impact such changes 
in rules, laws, regulations or customs may have on existing 
or future operations. In particular, in relation to OML 40, in 
line with the licence agreement, the Group has an option 
to request an extension of up to 20 years on the OML 40 
licence at the current licence expiry date of June 2019, at 
additional cost, provided the terms of OML 40 have been 
complied with. There is precedent for extension of licences 
in Nigeria and management believe it is more likely than not 
that an extension of the licence to 2026 can be obtained. 
The licence for Ubima is life of field. 
Increase in 
drilling costs 
and the 
availability 
of drilling 
equipment
The oil and gas industry historically has experienced periods of rapid 
cost increases. Increases in the cost of exploration and development 
may affect the Group’s ability to invest and to purchase or hire 
equipment, supplies and services. In addition, the availability of 
drilling rigs and other equipment and services is affected by the 
level and location of drilling activity around the world. An increase in 
drilling operations outside the Group’s intended area of operations 
may reduce the availability of equipment and services to the Group 
and to the companies with which it operates. The reduced availability 
of equipment and services may delay the Group’s ability, directly 
or indirectly, to exploit reserves and adversely affect the Group’s 
operations and profitability.
The Group’s management is constantly monitoring the 
market situation with regard to drilling equipment and 
services. The opportunities to exploit existing assets rely 
upon securing the necessary rigs, equipment and services 
in a timely manner. The Group has also initiated a number of 
remedial action plans to provide additional opportunities to 
secure equipment and services if these are not available in 
the market within a reasonable time frame.
Fiscal changes Changes in fiscal terms could adversely impact the Group’s 
operations and profitability.
The Group’s management reviews all proposed changes to 
fiscal terms in the areas in which it operates and actively 
participates in industry forums to promote transparency and 
inward investment in the area of operations.
On behalf of the Board
Louis Castro 
Chief Financial Officer 
27 May 2016 Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
26
BOARD OF DIRECTORS
George has over 20 years of oil industry experience in both the producing and 
service/manufacturing arena. He was Business Development Manager for Addax 
and, prior to this, Commercial Manager in Geneva. George joined Addax in 2004 
and held the General Manager’s position in Nigeria, responsible for finance, fiscal 
and commercial activities. Prior to this, George worked with ABB Oil & Gas as vice 
president of finance based in the UK with responsibilities for Europe and Africa. He 
held a similar position in Houston, from where the organisation ran its operations in 10 
countries. George was Finance Director in Singapore for Asia Pacific and Middle East, 
handling currency swaps and minimising exposures during the Asian financial crisis of 
the late 1990s.
George graduated from Robert Gordon University in Aberdeen with a Masters in 
Business Administration. George was appointed to the Board in September 2009 and 
was appointed as Chief Executive Officer in September 2014.
Louis has over 25 years of corporate finance and broking experience, in the UK 
and overseas, during which time he has been responsible for a number of oil, gas 
and mining IPOs and capital raisings. Louis was previously Managing Director of 
Northland Capital Partners in London and before this he was head of corporate 
finance at Matrix LLP and at Insinger de Beaufort. Prior to this Louis spent eight years 
at Williams de Broe, six years at Price Waterhouse and three years at SG Warburg. 
He has widespread international expertise, having advised the boards of companies 
worldwide, including in the oil & gas, mining, and energy sectors.
Louis is a Fellow of the Institute of Chartered Accountants in England and Wales 
and graduated with a BSc & BComm (Hons) in Engineering Production & Economics 
from Birmingham University. He was appointed to the Board in August 2012 and was 
appointed as Chief Financial Officer in September 2014.
Russell has over 40 years of diversified experience in the upstream oil and gas 
business. He started his career with Philips Petroleum in Texas and Norway and has 
held executive positions with Kerr McGee Oil, a leading US independent where he 
was responsible for properties in the UK, Norway and the Middle East. Russell was 
Managing Director of Lasmo North Sea from 1991 to 1996.
Russell has broad international experience, and has experience in the development  
of a number of startup exploration, production and service companies both in the  
UK and internationally.
Russell has a BSc in Mechanical Engineering from Imperial College and is a member  
of the Institute of Energy. Russell was appointed to the Board as Independent  
Non-Executive Director in August 2012 and moved to the role of Chairman in 
December 2015.
Audit committee
Remuneration committee
Nomination committee 
Technical and Reserves committee
George Maxwell
Chief Executive Officer
Louis Castro
Chief Financial Officer
Russell Harvey
Chairman Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
27
Strategic Report Governance Financial Statements Other information
Grégory has over 25 years of Investment Banking experience in the  
natural resources and related sectors. He held senior positions with Bear Stearns and 
Morgan Stanley in London, Moscow and New York. More recently, he worked with 
CIS Capital and Renaissance Capital providing advisory services to small companies 
and institutions involved with oil, gas and power assets in geographies across Russia, 
Kazakhstan and Sub-Saharan Africa.
He is a member of the Advisory Board of the Graduate School of International and 
Public Affairs at Columbia University in NY and is active with the University’s Centre 
for Global Energy Policy. He has a BA and a MA from Columbia University.
Grégory was appointed to the Board as Non-executive Director in January 2016
Richard has over 25 years of oil and gas experience and is currently Upstream 
Adviser to Helios Investment Partners. In his early career, Richard held the position 
of Reservoir Engineer at Elf Aquitaine, subsequently Total, covering upstream 
operations, reserves, new ventures and economic strategy over a ten-year period in 
France and Angola. Later he established the Technical Director role at BNP Paribas 
in its European oil and gas structured finance group. More recently he was General 
Operations Manager for Geopetrol and subsequently in 2010–2011 Richard was CEO 
and President of the TSX-listed Candax Energy.
Richard holds a PhD in Petroleum Engineering and an MSc in Petroleum Geology 
from Imperial College London as well as a BSc in Geology. Richard was appointed to 
the Board as Non-Executive Director in September 2014.
Henry has worked in the financial services sector since 1996, with a focus on 
equity capital markets. In 2006 he established Novum Securities, an independent 
stockbroking business focused on UK-listed securities. Prior to Novum Securities, 
Henry was a director at Evolution Securities where he led and oversaw numerous 
transactions, both private and public across many sectors.
Henry graduated with an MA (Hons) in Modern Languages from Edinburgh University 
and is a Member of the Securities Institute. Henry was appointed to the Board as 
Non-Executive Director in January 2015.
Olivier has over 23 years of investment banking and corporate finance experience in 
Europe and overseas, during which time he has been responsible for a number of oil 
and gas fundraisings, mergers and acquisitions.
Olivier was previously an independent advisor to oil & gas companies with SPTEC. 
He also acted as CFO and Director of Sea Dragon Energy, a Canadian listed E&P 
company for 5 years. Prior to this role, he spent 18 years in investment banking, 
primarily focused on the energy industry. He was Head of the Oil and Gas reserves 
based lending and acquisition finance at BNP Paribas, where he supported the 
growth of Independent Oil Companies. 
Olivier holds an MBA, finance major, from Columbia University. He was appointed as 
Chief Financial Officer designate in May 2016 and will be appointed as Chief Financial 
Officer and executive director immediately after the publication of this Annual Report.
Henry Turcan
Non-Executive Director
Olivier Serra
Chief Financial Officer 
Designate
Dr Richard Norris
Non-Executive Director
Grégory Stoupnitzky
Non-Executive Director Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
28
SENIOR MANAGEMENT
Pieter van der Groen
Chief Operating Officer
 
Pieter has 25 years of oilfield exploration and production 
experience in a variety of technical, operational and 
management roles. He started his career with Schlumberger 
as a geologist in London, moving on to become a wireline 
engineer working in South East Asia and West Africa. After 
his field work, he trained as a log analyst with Schlumberger 
in London for multiple clients.
Pieter then moved to Amerada Hess initially as a 
Petrophysicist in the international team, then to technical and 
management roles. 
Pieter worked briefly with Gulfsands Petroleum in Syria as 
Deputy General Manager.
In Nigeria he spent four years as General Manager of an 
independent oil company, overseeing onshore development 
and production in the Niger Delta, before moving to Eland 
Oil & Gas PLC as Technical Manager and latterly as Chief 
Operating Officer.
Pieter has a geology degree from Auckland University and 
a Masters degree in Petroleum Geology from the University 
of Aberdeen.
Adebayo Ayorinde
Managing Director, Nigeria
 
Adebayo has over 30 year’s diversified experience in 
the upstream oil and gas industry from oil and gas field 
development, Administration and Business development.
Adebayo started his career with Ashland and rose to the 
level of onshore Production Manager before leaving for 
texaco overseas where he served as Head of HR in Warri.
Afterwards, he worked for Moni Pulo ltd and allied energy 
as Executive Director and COO before joining Afren in 
2009. He was the Managing Director at Afren from 2011 
before joining Oriental Energy O&M Services in 2015. He 
joined Eland as Managing Director of Nigerian operations.
Adebayo has a degree in Chemical Engineering from the 
University of Ife and completed a GMP from Harvard.
Leslie Blair
Founder and Strategic Adviser
 
Les has over 30 years of upstream oil and gas industry 
experience, most recently with Addax. He spent 13 years 
with Addax in Nigeria and Kurdistan holding a wide variety 
of senior executive positions.
In 2006 Les assumed the position of General Manager 
of the operating company for the giant Taq Taq Field 
in Kurdistan and in 2008 became Managing Director of 
Addax Petroleum Middle East Limited.
Les graduated from the University of Aberdeen in Finance 
& Economics and is a Fellow of the Association of 
Chartered Certified Accountants. Les stepped down from 
the Board as Chief Executive Officer in September 2014 to 
assume the new role of Strategic Adviser to the Company 
based in Nigeria.
John Downey
Chief Technical Officer
 
John has over 30 years of upstream oil and gas industry 
experience in a variety of technical, commercial and 
managerial roles. These cover everything from frontier 
exploration, through appraisal and development, to 
mature field production. He is a geologist by background 
but has also worked as a petroleum economist. He has 
worked for several companies, holding senior positions at 
BP, Enterprise Oil, Shell and Dana Petroleum, in Europe, 
Southeast Asia and East, North and West Africa.
John has a BSc in Geology and Geography from 
Nottingham University and an MSc in Engineering Geology 
from Leeds University.
Gafar Olagunju
General Manager, Human Resources & Services
 
Gafar has over 40 years of diversified experience in the 
upstream oil and gas business covering production, drilling, 
completion and workover, logistics, administration, human 
resources, community relations, security and services 
in both onshore and offshore operations. He started his 
career with Elf Petroleum Nigeria.
Gafar subsequently worked with Mobil Producing Nigeria as 
Senior Operations Engineer before moving to Ashland Oil 
Nigeria Company/Addax Petroleum Development (Nigeria) 
where he worked in various senior managerial positions.
Gafar has a degree in Mechanical Engineering from 
the University of Lagos and a Diploma in Petroleum 
Engineering from the French Institute of Petroleum, Paris.
Jay Christison
Facilities General Manager
 
Jay has over 30 years of experience in design and 
construction of oilfield facilities worldwide. Prior to  
moving to Nigeria, he worked in California, the Middle  
East and Houston.
He spent five years as Country Manager for Paragon 
Engineering, providing design engineering services to the 
local petroleum industry and 10 years with Addax in key 
management roles.
Jay brings a proven record of performance in conceiving 
and executing smaller sized, fit-for-purpose, low cost 
projects, and a wealth of knowledge of the capabilities of 
local contractors and vendors in Nigeria. 
Jay has a Masters degree in Mechanical Engineering and 
has been a registered Professional Engineer in British 
Columbia since 1974. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
29
Strategic Report Governance Financial Statements Other information
Gilles Krijger
Technical Director
 
Gilles has over 35 years of upstream oil and gas experience. 
He joined Royal Dutch Shell in 1976 with assignments to 
Brunei Shell, Nederlandse Aardolie Maatschappij, Abu 
Dhabi Company for Onshore Operations, Shell Expro (UK), 
Shell Argentina, Norske Shell, and Shell Nigeria (SNEPCO). 
During his career with Shell, Gilles held various positions 
in reservoir and petroleum engineering, new ventures and 
project management. He joined Addax Petroleum in 1999 
and was Head of Reservoir Engineering, Head of Corporate 
Planning and Corporate Head of Reservoir Engineering/ 
Reserves Manager.
Gilles holds a Master’s degree in Aeronautical Engineering 
from the Technical University of Delft, Netherlands.
Edward Cozens
General Manager, Commercial
 
Edward joined Eland from GDF Suez E&P UK where he was 
a business analyst working in the Business Development 
team. Prior to working in E&P, Edward has four years’ 
Corporate Finance and Broking experience having worked 
at Allenby Capital and Matrix Group.
Edward was part of Matrix’s successful oil & gas franchise 
and was involved with numerous corporate actions and 
fundraisings for both private and public E&P clients.
Edward graduated from Loughborough University with a 
degree in Banking, Finance and Management.
Theophilus O. Odigie
Operations Manager
 
Theophilus O.Odigie holds B.Sc. (Hons) in Instrumentation 
and Systems Engineering obtained in 1980 from Teeside 
Polytechnic now Teeside University, Middlesbrough, UK.
He has over 34 years post graduation working experience 
which spans the Power, Steel, Glass, Oil and Gas industries. 
His technical competence includes Surface facilities 
Engineering, Maintenance, Operations, Safety Incident 
Investigation, Technical Auditing and Emergency Response. 
He is a registered and Certified Engineer. A certified 
Occupational Health practitioner. A trained Environmental 
Management System auditor. His last job was with Shell 
Petroleum Development Company of Nigeria for about 
twenty two years. The last position held was Operations 
Manager for Swamp West.
Hilary Azoba
Drilling Manager
 
Hilary Azoba is a versatile Petroleum Engineer and 
Petroleum Projects Development Manager with 27 years’ 
experience working for major energy companies in Nigeria, 
Oman, Gabon, UK, USA, Russia, and Canada among other 
countries. He holds B.Eng. (Mechanical Engineering, 1st 
Class Honours 1984) from the University of Nigeria Nsukka 
and MBA from the University of Phoenix Arizona (USA). 
He is a registered professional engineer in the Province 
of Alberta Canada and Member Society of Petroleum 
Engineers. His career experience centred around designing 
and delivering development and exploration wells on land, 
desert, arctic, swamp, and offshore environments, with 
stints in production facilities operations and maintenance 
and safety. 
Emmanuel Ikechukwu Iwunze
General Manager, Finance
 
Emmanuel is a Chartered Accountant of 30 years cognate 
experience. Emmanuel’s working experience spanned 
across Financial and Accounting Organizations and Oil  
and Gas.
He started his career with Deloitte Group and thereafter 
worked with Coopers and Lybrand, Inlak Group, Shell 
Petroleum Development Company of Nigeria Limited, 
Pan Ocean Oil Corporation as Finance Manager, Amni 
International Petroleum Development Company Limited as 
General Manager, Finance and PriceWaterhouse Coopers 
as a Consultant before joining Elcrest E & P Nigeria Limited 
as General Manager, Finance.
Emmanuel has B.Sc. (Hons) in Political Science, M.Sc. in 
Banking and Finance. He is a Fellow, Institute of Chartered 
Accountant, Associate Member, Chartered Institute of 
Taxation of Nigeria and Fellow of the Institute of Credit 
Administrators. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
30
DIRECTORS’ REPORT
Results and Dividend
The consolidated loss after tax for the year was $6.8 million (2014: loss of $16.3 million). The Directors do not 
propose a dividend (2014: $nil).
Details of significant events affecting the Company and Group since the balance sheet date are given in note 33 
to the financial statements. A fair review of the business including future developments is included in the Strategic 
Report on pages 2 to 25.
Directors’ Third Party Indemnity Provisions
The Company maintained during the period and to the date of approval of the financial statements indemnity 
insurance for its Directors and Officers against liability in respect of proceedings brought by third parties, subject 
to the terms and conditions of the Companies Act 2006.
Capital Structure
Details of the Capital Structure can be found in note 20 of the consolidated financial statements. The Company has 
employee share option plans in place, full details of which can be found in note 29 to the financial statements.
Financial Instruments
The Group’s principal financial instruments comprise cash and cash equivalents and debt facilities. Further details 
on financial instruments are given in note 30 to the financial statements.
Directors
Biographies of the present Directors of the Company are listed on pages 26 and 27.
Mr Henry John Arthur Turcan was appointed to the Board as a non-executive director on 02 January 2015. Henry 
‘Harry’ Wilson retired from his role as Chairman of the Company on 31 December 2015, and Robert Lambert retired 
from his role as Non-executive director on that same date. Also on that date, the Company appointed Grégory 
Stoupnitzky to the Board as a Non-executive Director. Following Mr Wilson’s retirement, Russell Harvey assumed 
the role of Non-executive Chairman, with effect from 31 December 2015. In May 2016, Olivier Serra was appointed 
as CFO-designate. He will become CFO and executive director upon the retirement from this role of Louis Castro 
immediately after the publication of this Annual Report.
In accordance with the Company’s Articles of Association, Grégory Stoupnitzky, Olivier Serra and Russell Harvey 
retire at the AGM and, being eligible, offer themselves for re-election.
Details of the remuneration of the Directors is disclosed in the Remuneration Report on pages 36 to 39.
Political Donations
No political donations were made during the year or the previous year.
Auditor
Each of the persons who is a Director at the date of approval of this Annual Report confirms that:
•  so far as the Director is aware, there is no relevant audit information of which the Company’s auditor is unaware; 
and,
•  the Director has taken all the steps that ought to have been taken as a director in order to make himself aware 
of any relevant audit information and to establish that the Company’s auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies 
Act 2006. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
31
Strategic Report Governance Financial Statements Other information
Deloitte LLP have been appointed as auditor and have expressed their willingness to continue in office as auditor 
and a resolution to reappoint them will be proposed at the forthcoming Annual General Meeting.
Going Concern
In assessing its conclusion on going concern, the Group has prepared cash, funding and liquidity forecasts through 
this year and next, and has appropriate plans in place to ensure that it has access to funding when required and 
that it is compliant with its covenants. Following the share placement and forward sale agreement discussed on 
page 21, the Group had significant cash reserves as at May 2016, totally approximately $25 million. 
Notwithstanding the uncertainties considered by the Directors, such as the timing for resumption of the Forcados 
Terminal (which we estimate will occur in June 2016), and judgements over the timings of liftings and the timing 
and value of settlement of expenditures, the Directors are satisfied that sufficient financial flexibility and mitigating 
actions are available to the Group.
Having regard to the matters above, and after making reasonable enquiries and taking account of uncertainties 
and reasonably possible changes in operating performance, the Directors have a reasonable expectation that the 
Company and the Group have adequate resources to continue operations for the foreseeable future, and do not 
consider that any material uncertainties exist. For that reason, they continue to adopt the going concern basis in 
the preparation of the accounts. Further information on the Group’s business activities, together with factors which 
impact these activities, such as the risk of interruptions to production, are included within the Chief Executive’s 
Report and the risk factors described on pages 24 to 25. Analysis of the Group’s financial position, its cash flows, 
liquidity position, cost estimates and borrowing facilities are described in the Financial Review on pages 20 and 21, 
and in notes 3 and 32 of the Financial Statements.
Approved by the Board of Directors and signed on behalf of the Board.
On behalf of the Board
Louis Castro
Chief Financial Officer 
27 May 2016 Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
32
CORPORATE GOVERNANCE REPORT
The UK Corporate Governance Code
Companies listed on the main market of the London Stock Exchange are required to comply with the UK Corporate 
Governance Code.
Eland Oil & Gas PLC’s shares are traded on AIM and as such, the Company is not subject to the requirements of 
the UK Corporate Governance Code on corporate governance, nor is it required to disclose its specific policies in 
relation to corporate governance. However, as a publicly quoted company, the Company will maintain appropriate 
standards of corporate governance.
The UK Corporate Governance Code represents the ‘gold standard’. However, the UK Corporate Governance Code 
was not designed with smaller companies in mind. Adherence to the full UK Corporate Governance Code is often 
impractical for smaller companies. In the past, in the absence of an alternative code, many AIM companies have 
adopted the UK Corporate Governance Code “to the extent applicable”.
In July 2005, the QCA introduced a simple set of guidelines for corporate governance for AIM companies, which 
were updated in July 2007 and again in September 2010. According to the QCA, the guidelines have been devised 
in consultation with a number of significant institutional smaller company investors.
The Directors recognise the importance of sound corporate governance and the Company holds membership of 
the QCA and complies with the QCA guidelines and the main provisions of the UK Corporate Governance Code, 
insofar as is practicable to do so for a company of Eland’s current size and stage of development, save in relation 
to the presentation of an Audit Committee report, performance evaluation procedures for the Directors and the 
Board and in relation to certain of the Directors, who will not be independent because of the grant or proposed 
grant of options to them by the Company.
The Board of Directors operates within the framework described below.
Table of Committees
The Board is responsible for formulating, reviewing and approving the Company’s strategy, budgets and corporate 
actions. Board meetings are held at least quarterly and at such other times as the Directors deem necessary.
The Directors recognise the value of the UK Corporate Governance Code and take appropriate measures to ensure 
that the Company complies, when practicable and so far as possible given the Company’s size and nature of 
business, with the UK Corporate Governance Code.
The roles of the Chief Executive and Chairman have been segregated and the Board has established a 
Remuneration Committee, an Audit Committee, a Technical and Reserves Committee and a Nomination Committee. 
All committees have formally delegated duties and responsibilities as follows:
Audit Committee
The Audit Committee consists of Henry Turcan as Chairman, Russell Harvey and Grégory Stoupnitzky. Harry 
Wilson and Robert Lambert both resigned from the Audit Committee upon their retirement from the Company 
on 31 December 2015. On the same date, Russell Harvey and Grégory Stoupnitzky were both appointed to the 
Committee. 
The Audit Committee meets at least twice each year and is responsible for ensuring that the financial performance 
of the Company is properly monitored and reported on and for meeting with the auditors and reviewing findings of 
the audit with the external auditor.
It is authorised to seek any information it properly requires from any employee and may ask questions of any 
employee. It meets with the auditors once a year without any members of management being present and is 
also responsible for considering and making recommendations regarding the identity and remuneration of such 
auditors. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
33
Strategic Report Governance Financial Statements Other information
Remuneration Committee
The Remuneration Committee consists of Russell Harvey as Chairman, Henry Turcan and Richard Norris. Harry 
Wilson stood down from the Committee on 1 April 2015 in light of his appointment to the role of Executive 
Chairman, and Henry Turcan was appointed to the Committee on the same date.
The Remuneration Committee meets at least once each year and considers and recommends to the Board the 
framework for the remuneration of the Executive Directors of the Company and senior management.
It further considers and recommends to the Board the total individual remuneration package of each Executive 
Director including bonuses, incentive payments and share options or other share awards. In addition, subject to 
existing contractual obligations, it reviews the structure of all share incentive plans for approval by the Board 
and, for each such plan, recommends whether awards are made and, if so, the overall amount of such awards, 
the individual awards to Executive Directors and the performance targets to be used. No Director is involved in 
decisions concerning his own remuneration.
Technical and Reserves Committee
The Technical and Reserves Committee consists of Russell Harvey as Chairman, and Richard Norris.
The Technical and Reserves Committee meets at least twice a year and is responsible for reviewing the technical 
performance and plans of the Company and to review and approve the annual reserves audit to be performed by 
a competent technical auditor. The committee is responsible for the selection and appointment of the technical 
auditor for recommendation provided by the Company or independently sourced by the committee.
Nomination Committee
The Nomination Committee consists of Russell Harvey as Chairman, and Grégory Stoupnitzky.
The Nomination Committee meets at least once each year and considers the selection and re-appointment of 
Directors. It identifies and nominates candidates to all Board vacancies and regularly reviews the structure, size 
and composition of the Board (including the skills, knowledge and experience) and makes recommendations to the 
Board with regard to any changes.
The Company has adopted a share dealing code (based on the AIM Rules) and the Company takes all proper and 
reasonable steps to ensure compliance by the Directors and relevant employees.
The Board is also responsible for ensuring the Company’s compliance with all applicable anti-corruption legislation, 
including, but not limited to, the UK Bribery Act 2010 and the US Foreign Corrupt Practices Act 1977. The Company 
complies and always has complied with all applicable anti-corruption laws. In view of the requirement in the UK 
Bribery Act 2010 for relevant companies to have adequate anti-bribery procedures, the Company has devised and 
implemented a suite of anti-corruption policies and procedures designed to prevent corruption by anyone working 
on its behalf. The Company has adopted a ‘zero tolerance’ approach to corruption and is committed to ethical 
business practices.
Board and Committee Attendance Register 2015*
Board In 
Attendance
Audit 
Committee
In Attendance
Remuneration 
Committee
In Attendance
Reserves 
Committee
In Attendance
Nomination
Committee
In Attendance
Executive Directors
George Maxwell 9 – – – –
Louis Castro 9 3 – – –
Harry Wilson (retired 31 December 2015) 9 3 1 – 3
Non-Executive Directors
Robert Lambert 8 3 – 4 3
Russell Harvey 9 – 4 4 3
Richard Norris 8 – 4 4 –
Henry Turcan (appointed 2 January 2015) 9 3 3 – –
Grégory Stoupnitzky (appointed 31 December 2015) – – – – –
*  During 2015, there were 9 Board meetings, 3 Audit Committee meetings, 4 Remuneration Committee meetings, 4 Reserves Committee 
meetings and, 3 Nomination Committee meetings. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
34
Internal Control
The Company has in place policies on internal control and corporate governance. These have been prepared in 
order to ensure that:
•  proper business records are maintained and reported on, which might reasonably affect the conduct of the 
business;
•  monitoring procedures for the performance of the Group are presented to the Board at regular intervals;
•  budget proposals are submitted to the Local Board no later than two months before the start of each financial 
year;
•  budget proposals are submitted to the Board no later than one month before the start of each financial year;
•  accounting policies and practices suitable for the Group’s activities are followed in preparing the financial 
statements;
•  the Group is provided with general accounting, administrative and secretarial services as may reasonably be 
required; and
•  interim and annual accounts are prepared and submitted in time to enable the Group to meet statutory filing 
deadlines.
Communication with Shareholders
Communications with shareholders are given a high priority by the Board of Directors who take responsibility 
for ensuring that a satisfactory dialogue takes place. This is achieved through its Annual Report, Interim Report 
and comprehensive website (www. elandoilandgas.com). There is also a regular dialogue between the Chief 
Executive Officer, the Chief Financial Officer and institutional investors and other financial institutions in addition 
to the required public announcements. A constant and up-to-date information flow is maintained on the website 
containing all press announcements and financial reports.
Russell Harvey
Chairman 
27 May 2016
CORPORATE GOVERNANCE REPORT continued Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
35
Strategic Report Governance Financial Statements Other information
DIRECTORS’ RESPONSIBILITY STATEMENT
The Directors are responsible for preparing the Annual Report and the financial statements in accordance with 
applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the 
Directors are required to prepare the group financial statements in accordance with International Financial 
Reporting Standards (IFRSs) as adopted by the European Union and have also chosen to prepare the parent 
company financial statements under IFRSs as adopted by the EU. Under company law the Directors must not 
approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the 
company and of the profit or loss of the Company for that period . In preparing these financial statements, 
International Accounting Standard 1 requires that Directors:
•  properly select and apply accounting policies;
•  present information, including accounting policies, in a manner that provides relevant, reliable, comparable and 
understandable information;
•  provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to 
enable users to understand the impact of particular transactions, other events and conditions on the entity’s 
financial position and financial performance; and
• make an assessment of the company’s ability to continue as a going concern.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 
Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company 
and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also 
responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention 
and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included 
on the Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of 
financial statements may differ from legislation in other jurisdictions.
Responsibility statement
We confirm that to the best of our knowledge:
•  the financial statements, prepared in accordance with International Financial Reporting Standards as adopted 
by the EU, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company 
and the undertakings included in the consolidation taken as a whole; and
•  the Strategic Report includes a fair review of the development and performance of the business and the 
position of the Company and the undertakings included in the consolidation taken as a whole, together with a 
description of the principal risks and uncertainties that they face.
By order of the Board
George Maxwell  Louis Castro
Chief Executive Officer Chief Financial Officer
27 May 2016  27 May 2016 Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
36
DIRECTORS’ REMUNERATION REPORT 
for the year ended 31 December 2015
The Remuneration Committee (the ‘Committee’) consists of Russell Harvey as Chairman, Henry Turcan and Richard 
Norris. The Committee is responsible for determining and making recommendations to the Board on the structure 
and overall remuneration package for Executive Directors and reviews the remuneration for the Company’s senior 
employees. It is responsible for determining individual remuneration packages including, where appropriate, 
bonuses, incentive payments and share options.
The remuneration of the Non-Executive Directors is set by the Board on the basis of a proposal prepared by the 
Committee. No Director may participate in any meeting at which discussion or any decision regarding his own 
remuneration takes place. The Committee also administers the Company’s share option and share award schemes. 
The Committee keeps itself fully informed of all relevant developments and best market practice in the field of 
remuneration.
The Committee is permitted to appoint independent advisers to assist in the determination of the remuneration 
and does so periodically.
Harry Wilson stood down from the Committee on 1 April 2015 in light of his appointment to the role of Executive 
Chairman, and Henry Turcan was appointed to the Committee on the same date.
Remuneration Policy
The Committee, in forming its policy on remuneration, has given due consideration to the needs of the Company, 
the shareholders and the provisions of the 2012 UK Corporate Governance Code (the ‘Code’). The ongoing policy 
of the Committee is that the overall remuneration package should be sufficiently competitive to attract, retain and 
motivate high quality employees capable of achieving the Group’s objectives and to incentivise them effectively, so 
as to deliver long-term shareholder value.
It is the aim of the Committee to reward key employees on a basis which is linked, to a significant extent, to the 
performance of the individual and of the Company. Also, the remuneration is subject to the broader principle that 
their remuneration should be competitive with that received by professionals of comparable companies, and to this 
end a benchmarking exercise was carried out during the course of 2014.
There are five main elements of the remuneration package:
•  Base salary
• Employee benefits
• Performance-related cash bonus
• Performance-related share award
• Long-term share options
The Group bonus performance measurement for Executive Directors and staff is based upon personal 
performance, linked to personal development plans and Group performance in achieving the key operational 
targets. The key operational targets relate to production, reserves and budget performance. The Group continues 
to monitor key metrics on share performance versus its peer group companies and key indices such as the FTSE 
AIM Oil & Gas, and FTSE AIM All-Share.
The share option plans also have key performance measurements in place which include achievement of a 
significant increase in share price in addition to a vesting period of between two and three years in order for the 
options to be exercised.
Base Salary
The policy is to pay a fair and reasonable base salary, taking into account comparable salaries for similar roles in 
similar companies. The base salary is reviewed annually by the Committee having regard to the performance of the 
Company, individual performance, market data, levels of increases applicable to other employees of the Company 
and economic conditions. A salary and bonus review for staff and Executive Directors was undertaken in Q1 2015. A 
similar review was undertaken in Q1 2016 and as a result, in light of the low oil price environment, certain steps have 
been taken as deemed appropriate by the Board, in order to reduce salary costs across the Group. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
37
Strategic Report Governance Financial Statements Other information
Employee Benefits
Of the Executive Directors, George Maxwell and Louis Castro received car allowances in the period. In 2015, 
pension contributions totalling £66,000 (2014: £67,612) were made in respect of the current year. Pension plan 
arrangements for all employees including Executive Directors are set at 11% Company contribution of gross base 
salary. Further details of Directors’ remuneration paid in the year are set out on page 39 and in note 31 of the 
Financial Statements.
The Company provides the Company’s Directors and Officers with third party indemnity insurance.
Employee Share Plan
On 26 June 2012 the Board modified and approved the long-term employee share plan (the ‘Share Plan’), designed 
to provide incentives to employees to act in the long-term best interests of the Group and its shareholders. 
Performance-related share awards may be granted under the Share Plan to the Company’s employees and 
Executive Directors by the Board, upon recommendation by the Remuneration Committee.
Long-Term Share Option Scheme
On 26 June 2012, the Board approved the implementation of share option plans (the ‘Plans’). On the same 
day, 412,500 options were granted under the Plans to the employees and Directors over Ordinary Shares of 
the Company. On 31 August 2012, the Board approved the award of 10,467,263 options under the Plans to the 
employees and Directors over Ordinary Shares of the Company. Details of the terms of the options awarded to 
Directors and employees under the Plan are set out in Note 29 to the Financial Statements.
The grant of options to Directors under the Plan results in the following position at the date of this report:
Director
New options
granted 
in 2015
New options
granted 
in 2016
Lapsed 
in 2016
Total number 
of options held 
at the date of 
this report
George Walter Mitchell Maxwell – 500,000 (941,415) 3,324,252
Henry George Wilson (retired 31 December 2015) – – (627,797) 1,883,394
Robert Alexander Lambert (retired 31 December 2015) – – – –
Louis Emmanuel Castro – 200,000 (32,500) 297,500
Russell Seth Harvey – 500,000 – 500,000
Richard Norris – – – –
Grégory Stoupnitzky (appointed 31 December 2015) – – – –
Henry Turcan – – – – Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
38
Performance Graph
The following graph shows the Company’s total shareholder return (TSR) from 1 January 2015 to 13 May 2016, 
against the FTSE AIM All-Share Index and the FTSE AIM Oil & Gas index (re-based to 100):
20
30
40
50
60
70
80
90
100
110
120
Eland FTSE Aim All-Share FTSE Aim Oil & Gas
 
Source: Canaccord Acuity 
DIRECTORS’ REMUNERATION REPORT continued 
for the year ended 31 December 2015 Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
39
Strategic Report Governance Financial Statements Other information
Directors’ Remuneration
The remuneration of the Directors who held office in the year ended 31 December 2015, payable by Group 
companies, was as follows:
Directors
Fees 
and salary
£000
Annual 
bonus
£000
Pension
£000
Benefits 
in kind
£000
Total 
2015
£000
Total 
2014
£000
Executive Directors
Henry George Wilson 190 – – 4 194 283
George Walter Mitchell Maxwell 388 67 38 4 497 452
Louis Castro
1
288 13 28 5 334 136 
Ian Leslie Blair
2, 3
– – – – – 439
Gilles Jacobus Krijger
4, 8
– – – – – 31
Non-Executive Directors
Robert Alexander Lambert 51 – – – 51 51
Russell Seth Harvey 57 – – – 57 56
James Ede-Golightly
4
– – – – – 5
Andrew Bartlett
5
– – – – – 33
Henry Turcan
6
 48 – – – 48 –
Richard Norris
7
49 – – – 49 16
Total 1,071 80 66 13 1,230 1,502
1  Louis Castro was appointed to the executive role of Chief Financial Officer on 8th September 2014. He was previously a non-executive 
director of the Company.    
2  Ian Leslie Blair received basic salary in US Dollars and fees in GB Pound sterling in 2014.    
3  Ian Leslie Blair stood down from the Board on 8 September 2014.    
4  Gilles Krijger and James Ede-Golightly stood down from the Board of Directors on 11 February 2014.    
5  Andrew Bartlett stood down from the Board on 15 September 2014.    
6  Henry Turcan was appointed to the Board on 02 January 2015.    
7  Richard Norris was appointed to the Board on 15 September 2014.    
8  In addition to the above amounts, Gilles Krijger received compensation for loss of office amounting to £6,250 in 2014. 
9  In addition to the above amounts, £6,125 was paid to Henderson Global Investors for Henry Turcan’s services as a non-executive 
director. 
Non-Executive Directors
All Non-Executive Directors have contracts for services, setting out the terms and conditions of their appointment, 
which are terminable upon the provision of three months’ written notice by either party. Their remuneration is 
determined by the Board upon recommendation of the Remuneration Committee. Save for the fees received under 
the letters of appointment, options awarded under the Plan and reimbursement of reasonable expenses incurred in 
the discharge of their duties, the Non-Executive Directors are not entitled to any other benefits or arrangements.
Russell Harvey
Chairman 
Remuneration Committee  
27 May 2016 Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
40
INDEPENDENT AUDITOR’S REPORT 
To the Members of Eland Oil & Gas PLC
We have audited the financial statements of Eland Oil & Gas PLC for the year ended 31 December 2015 which 
comprise the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the 
Consolidated and Parent Company Balance Sheets, the Consolidated and Parent Company Cash Flow Statements, 
the Consolidated and Parent Company Statements of Changes in Equity and the related notes 1 to 33. The financial 
reporting framework that has been applied in their preparation is applicable law and International Financial 
Reporting Standards (IFRSs) as adopted by the European Union and, as regards the parent company financial 
statements, as applied in accordance with the provisions of the Companies Act 2006.
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the 
Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members 
those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest 
extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the 
Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and auditor
As explained more fully in the Directors’ Responsibilities Statement, the Directors are responsible for the 
preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility 
is to audit and express an opinion on the financial statements in accordance with applicable law and International 
Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s 
Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to 
give reasonable assurance that the financial statements are free from material misstatement, whether caused by 
fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Group’s 
and the parent company’s circumstances and have been consistently applied and adequately disclosed; the 
reasonableness of significant accounting estimates made by the Directors; and the overall presentation of the 
financial statements. In addition, we read all the financial and non-financial information in the annual report to 
identify material inconsistencies with the audited financial statements and to identify any information that is 
apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the 
course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we 
consider the implications for our report.
Opinion on financial statements
In our opinion:
•  the financial statements give a true and fair view of the state of the Group’s and of the parent company’s affairs 
as at 31 December 2015 and of the Group’s loss for the year then ended;
•  the Group financial statements have been properly prepared in accordance with IFRSs as adopted by the 
European Union;
•  the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by 
the European Union and as applied in accordance with the provisions of the Companies Act 2006; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006 
In our opinion the information given in the Strategic Report and the Directors’ Report for the financial year for 
which the financial statements are prepared is consistent with the financial statements. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
41
Strategic Report Governance Financial Statements Other information
Matters on which we are required to report by exception 
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report 
to you if, in our opinion:
• adequate accounting records have not been kept by the parent company, or returns adequate for our audit 
have not been received from branches not visited by us; or
• the parent company financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Jon Thomson FCA (Senior statutory auditor)
for and on behalf of Deloitte LLP
Chartered Accountants and Statutory Auditor, London, United Kingdom
27 May 2016 Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
42
CONSOLIDATED INCOME STATEMENT 
for the year ended 31 December 2015
Note
2015
$000’s
2014
$000’s
Revenue 4 18,108 11,698
Operating expenses 4 (17,987) (18,222)
Administrative expenses (6,386) (8,839)
Operating loss (6,265) (15,363)
Finance costs 8 (3,309) (1,503)
(3,309) (1,503)
Loss before tax (9,574) (16,866)
Income tax credit/(expense) 9 2,812 569
Loss after tax and for the year from continuing operations (6,762) (16,297)
Profit/(loss) attributable to:
Owners of the Company 20,404 10,671
Non-controlling interests 25 (27,166) (26,968)
(6,762) (16,297)
Earnings per share Note
2015
$
2014
$
From continuing operations:
Basic 10 0.13 0.07
Diluted 10 0.13 0.07
 
All activities relate to continuing operations.
The notes on pages 50 to 82 form part of these financial statements. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
43
Strategic Report Governance Financial Statements Other information
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
for the year ended 31 December 2015
Note
2015
$000’s
2014
$000’s
Loss for the year (6,762) (16,297)
Items that may be reclassified subsequently to profit and loss:
Exchange differences on translation of financial statements to presentation 
currency
– –
Total comprehensive loss for the year (6,762) (16,297)
Comprehensive income/(loss) attributable to:
Owners of the Company 20,404 10,671
Non-controlling interests 25 (27,166) (26,968)
(6,762) (16,297)
The notes on pages 50 to 82 form part of these financial statements. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
44
CONSOLIDATED BALANCE SHEET 
as at 31 December 2015
Note
2015
$000’s
2014
$000’s
Non-current assets
Intangible oil and gas assets 11 11,052 11,355
Property, plant and equipment 12 183,585 188,114
Deferred tax asset 9 3,596 784
 198,233 200,253
Current assets
Inventory 14 353 353
Trade and other receivables 15 5,006 4,430
Cash and cash equivalents 8,461 15,017
13,820 19,800
Total assets 212,053 220,053
Current liabilities
Trade and other payables 16 (20,835) (36,231)
Other provisions 17 – (2,250)
(20,835) (38,481)
Net current liabilities (7,015) (18,681)
Non-current liabilities
Decommissioning provision 19 (9,809) (12,306)
Bank loan (13,367) –
(23,176) (12,306)
Total liabilities (44,011) (50,787)
Net assets 168,042 169,266
Shareholders’ equity
Share capital 20 248,039 248,039
Equity 21 – –
Other reserve 22 (10,542) (15,542)
Retained earnings 23 29,412 8,470
Translation reserve 24 1,429 1,429
Equity attributable to the owners of the Company 268,338 242,396
Non-controlling interests 25 (100,296) (73,130)
Total equity 168,042 169,266
 
The notes on pages 50 to 82 form part of these financial statements.
The financial statements of Eland Oil & Gas PLC, registered number SC 364753, were approved and authorised for 
issue by the Board of Directors on 27 May 2016.
George Maxwell   Louis Castro
Chief Executive Officer  Chief Financial Officer Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
45
Strategic Report Governance Financial Statements Other information
COMPANY BALANCE SHEET 
as at 31 December 2015
Note
2015
$000’s
2014
$000’s
Non-current assets
Investments in group undertakings 13 189,250 181,414
Property, plant and equipment 12 565 357
189,815 181,771
Current assets
Trade and other receivables 15 49,011 49,894
Cash and cash equivalents 753 11,857
49,764 61,751
Total assets 239,579 243,522
Current liabilities
Trade and other payables 16 (3,357) (9,050)
Net current assets 46,407 52,701
Net assets 236,222 234,472
Shareholders’ equity
Share capital 20 248,039 248,039
Equity reserve 21 – –
Other reserve 22 (10,542) (15,542)
Retained earnings/(losses) 23 (2,346) 904
Translation reserve 24 1,071 1,071
Equity attributable to the owners of the Company 236,222 234,472
The notes on pages 50 to 82 form part of these financial statements.
The financial statements of Eland Oil & Gas PLC, registered number SC 364753, were approved by the Board of 
Directors on 27 May 2016.
George Maxwell   Louis Castro
Chief Executive Officer  Chief Financial Officer Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
46
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
year ended 31 December 2015
Share
capital
$000’s
Equity
reserve
$000’s
Other
reserve
$000’s
Translation
reserve
$000’s
Retained
losses
$000’s
Total
$000’s
Non–
controlling
interests
$000’s
Total
equity
$000’s
Balance at 1 January 2014 214,768 8,008 (15,542) 1,429 (11,717) 196,946 (46,162) 150,784
Comprehensive profit/(loss)  
for the year
– – – – 10,671 10,671 (26,968) (16,297)
Share-based payments (note 29) – – – – 1,508 1,508 – 1,508
Issue of share capital (note 20) 33,271 – – – – 33,271 – 33,271
Transfer of equity reserve to 
retained losses (note 21)
– (8,008) – – 8,008 – – –
Balance at 31 December 2014 248,039 – (15,542) 1,429 8,470 242,396 (73,130) 169,266
Comprehensive profit/(loss)  
for the year
– – – 20,404 20,404 (27,166) (6,762)
Cancellation of forward purchase 
arrangement of shares (note 22)
– – 5,000 – – 5,000 – 5,000
Share-based payments – – – – 812 812 – 812
Other adjustments – – – – (274) (274) – (274)
Balance at 31 December 2015 248,039 – (10,542) 1,429 29,412 268,338 (100,296) 168,042
 
The notes on pages 50 to 82 form part of these financial statements. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
47
Strategic Report Governance Financial Statements Other information
COMPANY STATEMENT OF CHANGES IN EQUITY 
year ended 31 December 2015
Share 
Capital
 $000’s
Equity
 Reserve
 $000’s
Other
 Reserve
 $000’s
Translation
 Reserve
 $000’s
Retained
(losses)/
Earnings 
$000’s
Total 
Equity 
$000’s
Balance at 1 January 2014 214,768 8,008 (15,542) 1,071 (1,376) 206,929
Comprehensive loss for the year – – – – (7,236) (7,236)
Share-based payments (note 29) – – – – 1,508 1,508
Issue of share capital (note 20) 33,271 – – – – 33,271
Transfer of equity reserve to retained losses (note 21) – (8,008) – – 8,008 –
Balance at 31 December 2014 248,039 – (15,542) 1,071 904 234,472
Loss for the year – – – – (4,062) (4,062)
Share-based payments – – – – 812 812
Cancellation of forward purchase arrangement  
of shares (note 22)
– – 5,000 – – 5,000
Balance at 31 December 2015 248,039 – (10,542) 1,071 (2,346) 236,222
 
The notes on pages 50 to 82 form part of these financial statements. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
48
CONSOLIDATED CASH FLOW STATEMENT
year ended 31 December 2015
Note
2015
$000’s
2014
$000’s
Cash used in operating activities 26 (3,565) (5,339)
Interest and financing fees paid (3,210) (348)
Income tax paid (214) (316)
Net cash used in operating activities (6,989) (6,003)
Investing activities
Acquisition of interest in licence – (7,000)
Acquisition of intangible assets – (3,936)
Development expenditure (11,212) (3,667)
Exploration and evaluation expenditure (1,102) (950)
Purchases of fixtures and equipment (741) (299)
Proceeds from sale of fixtures and equipment – 2
Net cash used in investing activities (13,055) (15,860)
Financing activities
Net proceeds on issue of shares – 33,271
Net proceeds from borrowings 13,525 –
Net cash from financing activities 13,525 33,271
Net (decrease)/increase in cash and cash equivalents (6,519) 11,408
Cash and cash equivalents at the beginning of the year 15,017 3,847
Effect of foreign exchange rate changes (37) (238)
Cash and cash equivalents at the end of the year 8,461 15,017
 
The notes on pages 50 to 82 form part of these financial statements. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
49
Strategic Report Governance Financial Statements Other information
COMPANY CASH FLOW STATEMENT
year ended 31 December 2015
Note
2015
$000’s
2014
$000’s
Cash used in operating activities 26 (1,376) (9,559)
Interest and financing fees paid (1,197) (348)
Income tax paid (214) (316)
Net cash used in operating activities (2,787) (10,223)
Investing activities
Cash advance made to other parties* – (7,000)
Investment in Group undertakings (7,836) (7,187)
Purchases of fixtures and equipment (442) (226)
Proceeds from sale of fixtures and equipment – 2
Net cash used in investing activities (8,278) (14,411)
Financing activities
Net proceeds on issue of shares – 33,271
Net cash from financing activities – 33,271
Net (decrease)/increase in cash and cash equivalents (11,065) 8,637
Cash and cash equivalents at the beginning of the year 11,857 3,442
Effect of foreign exchange rate changes (39) (222)
Cash and cash equivalents at the end of the year 753 11,857
 
The notes on pages 50 to 82 form part of these financial statements.
*  These relate to amounts paid by the Company directly to All Grace Energy Limited on behalf of the Group’s subsidiary Wester Ord Oil and Gas (Nigeria) 
Limited in respect of the farm-in fee for the Ubima licence acquisition. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
50
NOTES TO THE FINANCIAL STATEMENTS
year ended 31 December 2015
1. General information
The principal accounting policies are summarised below. They have all been applied consistently throughout the 
year and preceeding year.
Eland Oil & Gas PLC (the “Company”, together with its subsidiaries and controlled entities, the “ Group”) is a 
company incorporated in the United Kingdom, under the Companies Act 2006. The address of the registered office 
is given on the back cover. The nature of the Company’s operations and its principal activities are set out in the 
Strategic Report.
The Company and the Group’s financial statements cover the year to 31 December 2015.
2.  Significant accounting policies 
Basis of accounting
The financial statements have been prepared in accordance with International Financial Reporting Standards 
(IFRSs) as adopted by the European Union and therefore the Group financial statements comply with Article 4 of 
the EU Regulations.
The financial statements have been prepared on the historical cost basis. Historical cost is generally based on the 
fair value of the consideration given in exchange for the assets at the date of transaction. The principal accounting 
policies adopted are set out below.
As permitted by section 408 of the Act, the Company has elected not to present its income statement for the year. 
Eland Oil & Gas PLC reported a loss for the year ended 31 December 2015 of $4.1m (2014: loss of $7.2 million).
Going concern
In assessing its conclusion on going concern, the Group has prepared cash, funding and liquidity forecasts through 
this year and next, and has appropriate plans in place to ensure that it has access to funding when required and 
that it is compliant with its covenants. Following the share placement and forward sale agreement discussed on 
page 21, the Group had significant cash reserves as at May 2016, totalling approximately $25 million. 
Notwithstanding the uncertainties considered by the Directors, such as the timing for resumption of the Forcados 
Terminal (which we estimate will occur in June 2016), and judgements over the timings of liftings and the timing 
and value of settlement of expenditures, the Directors are satisfied that sufficient financial flexibility and mitigating 
actions are available to the Group.
Having regard to the matters above, and after making reasonable enquiries and taking account of uncertainties 
and reasonably possible changes in operating performance, the Directors have a reasonable expectation that the 
Company and the Group have adequate resources to continue operations for the foreseeable future, and do not 
consider that any material uncertainties exist. For that reason, they continue to adopt the going concern basis in 
the preparation of the accounts. Further information on the Group’s business activities, together with factors which 
impact these activities, such as the risk of interruptions to production, are included within the Chief Executive’s 
Report and the risk factors described on pages 24 and 25. Analysis of the Group’s financial position, its cash flows, 
liquidity position, cost estimates and borrowing facilities are described in the Financial Review on pages 20 and 21, 
and in notes 3 and 32 of the Financial Statements.
Basis of consolidation
The Group’s consolidated financial statements incorporate the financial statements of the Company and entities 
controlled by the Company made up to 31 December each year. Control exists when an investor has power over the 
investee, exposure or rights to variable returns from its involvement with the investee and the ability to use power 
over the investee to affect the amount of returns.  Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
51
Strategic Report Governance Financial Statements Other information
2.  Significant accounting policies continued
Elcrest Exploration and Production Nigeria Limited has been consolidated because it is controlled by the Company. 
The Company has power to affect the amount of returns for the following reasons:
•  the Company is entitled to appoint a number of Directors to the Board such that it can control decision making.
•  in the event of disagreement amongst the Board of Directors, decisions are reached by shareholder vote and 
the Company has the ability, through the combined effect of a Shareholders Agreement, Loan Agreement and 
Share Charge, to direct the votes of the 55% shareholding that it does not own.
Non-controlling interests in the net assets of the consolidated subsidiaries are identified separately from the 
Group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original 
business combination and the non-controlling interest’s share of changes in equity since the date of combination.
New IFRS standards and interpretations
In the current year, the following new and revised Standards and Interpretations have been adopted. Their 
application has not had any significant impact on the amounts reported or the disclosures in these financial 
statements, except for extra disclosures in respect of IFRS 12. 
IAS 36 (amendments) Recoverable Amount Disclosures for Non-Financial Assets
IFRS 10 (amendments) Consolidated Financial Statements
IFRS 10 and 12 Consolidated Financial Statements and Disclosures of Interests in Other 
Entities
IFRS 11 and amendments Joint Arrangements.
IAS 27 (amendments) Investment Entities
IAS 28 (as revised in 2011),  Investments in Associates and Joint Ventures. 
amendments
IAS 32 Offsetting financial assets and financial liabilities 
IAS 39 (amendments) Novation of Derivatives and Continuation of Hedge Accounting
At the date of authorisation of these financial statements, the following Standards and Interpretations which have 
not been applied in these financial statements were in issue but not yet effective (and in some cases had not yet 
been adopted by the European Union):
IFRS 15 Revenue from contracts with customers 
IFRS 16 Leases
IFRS 9 Financial Instruments
IFRIC Interpretation 21 Levies
The Directors do not expect that the adoption of the Standards and Interpretations listed above will have a 
material impact on the financial statements of the Group in future periods, IFRS 15 may have an impact on revenue 
recognition and related disclosures. IFRS 16 is likely to require a change in the treatment of our lease agreements. 
Beyond the information above, it is not practicable to provide a reasonable estimate of the effect of IFRS 15 and 
IFRS 16 until a detailed review has been completed. 
No new Standards or Interpretations were early adopted by the Group or Company during the year.
Joint arrangements
A joint arrangement is an arrangement over which two or more parties have joint control. The Group is engaged 
in oil and gas exploration, development and production through unincorporated joint ventures which it accounts 
for as joint operations whereby the Group accounts for its share of the results, assets and liabilities of these joint 
operations. The Group accounts for its interests in jointly controlled entities using the equity method. Under the 
equity method, the investment is initially recognised at cost. The carrying amount of the investment is adjusted to 
recognise changes in the Group’s share of net assets of the venture since the acquisition date. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
52
NOTES TO THE FINANCIAL STATEMENTS
year ended 31 December 2015
2.  Significant accounting policies continued
Revenues
Sales revenue represents the sales value of the Group’s oil liftings in the year. Oil revenue is recognised when the 
risks and rewards of ownership have transferred substantially to the buyer and it can be reliably measured, and 
generally occurs when title has passed on bill of lading. Revenue is measured at the fair value of the consideration 
received or receivable and represents amounts receivable for oil and gas products in the normal course of business, 
net of discounts, customs duties and sales taxes.
Overlift/underlift
Lifting or offtake arrangements for oil and gas produced in the Group’s jointly owned operations are such that 
each participant may not receive and sell its precise share of the overall production in each period. The resulting 
imbalance between cumulative entitlement and cumulative production is underlift or overlift. Underlift and overlift 
are valued at market value and included within receivables and payables respectively. Movements during an 
accounting period are adjusted through cost of sales such that gross profit is recognised on an entitlement basis. 
Oil and gas assets – exploration and evaluation assets
During the geological and geophysical exploration phase, expenditures are charged against income as incurred. 
Once the legal right to explore has been acquired, expenditures directly associated with exploration and evaluation 
are capitalised as intangible assets and are reviewed at each reporting date to confirm that there is no indication of 
impairment and that drilling is still underway or is planned. If no future exploration or development activity is planned 
in the licence area, the exploration licence and leasehold property acquisition costs are written off. Pre-licencing 
expenditures on oil and gas assets are recognised as an expense within the income statement when incurred.
Oil and gas assets – development and production assets
Once a project is commercially feasible and technically viable, which in practice is when the asset has been 
approved for development by the appropriate regulatory authorities, the carrying value of the associated 
exploration licence and property acquisition costs and the related cost of exploration wells are transferred 
to development oil and gas properties after the impairment test. Development and production assets are 
accumulated generally on a field-by-field basis and represent the full cost of developing the commercial reserves 
discovered and bringing them into production. The cost of development and production assets also includes the 
cost of acquisitions and purchase of such assets, directly attributable overheads, finance costs capitalised, and the 
cost of recognising provisions for future restoration and decommissioning.
Other property, plant and equipment
Fixtures and equipment are stated at cost less accumulated depreciation and any recognised impairment loss.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their 
useful lives, using the straight-line method, on the following bases:
Fixtures and equipment 10% – 30% per annum 
Motor vehicles  30% per annum
Depreciation of producing assets
The net book values of producing assets are depreciated on a field-by-field basis using the unit-of-production 
method by reference to the ratio of production in the year and the related proved and probable commercial 
reserves of the field, taking into account future development expenditures necessary to bring those reserves into 
production. Producing assets are generally grouped with other assets that are dedicated to serving the same 
reserves for depreciation purposes, but are depreciated separately from producing assets that serve other reserves.
Impairment of development and production assets
An impairment test is performed whenever events and circumstances arising during the development or 
production phase indicate that the carrying value of a development or production asset may exceed its recoverable 
amount. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
53
Strategic Report Governance Financial Statements Other information
2.  Significant accounting policies continued
The carrying value is compared against the expected recoverable amount of the asset, generally by reference to 
the present value of the future net cash flows expected to be derived from production of commercial reserves. 
The cash generating unit applied for impairment test purposes is generally the field, except that a number of field 
interests may be grouped as a single cash generating unit where the cash inflows of each field are interdependent.
Commercial reserves are proved and probable oil and gas reserves, which are defined as the estimated quantities 
of crude oil, natural gas and natural gas liquids which geological, geophysical and engineering data demonstrate 
with a specified degree of certainty to be recoverable in future years from known reservoirs and which are 
considered commercially viable. There should be at least a 50% statistical probability that the actual quantity of 
recoverable reserves will be equal or more than the amount estimated as proved and probable reserves. 
Any impairment identified is charged to the income statement as additional depreciation. Where conditions giving 
rise to impairment subsequently reverse, the effect of the impairment charge is also reversed as a credit to the 
income statement, net of any depreciation that would have been charged since the impairment.
Acquisitions, asset purchases and disposals
Acquisitions of oil and gas properties are accounted for under the acquisition method when the assets acquired 
and liabilities assumed constitute a business. There have been no such acquisitions to date.
Transactions involving the purchase of an individual field interest, or a group of field interests, that do not 
constitute a business, are treated as asset purchases irrespective of whether the specific transactions involve the 
transfer of the field interests directly or the transfer of an incorporated entity. Accordingly, no goodwill and no 
deferred tax gross up arises, and the consideration is allocated to the assets and liabilities purchased based on 
relative fair values.
Proceeds on disposal are applied to the carrying amount of the specific intangible asset or development and 
production assets disposed of and any surplus or deficit is recorded as a gain or loss on disposal in the income 
statement.
Cash and cash equivalents
Cash and cash equivalents comprise cash and short term bank deposits with an original maturity of three months 
or less. Under the terms of the Reserves Based Loan, the Company is required to set aside as Restricted Cash 
amounts to cover the costs of servicing the debt and stamp duty. As at 31 December 2015, Restricted Cash 
amounted to $1,031,483.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials, and where 
applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their 
present location and condition and is determined on a first-in, first-out method. Net realisable value represents the 
estimated selling price less all estimated costs to be incurred in marketing, selling and distribution.
Provisions
Provisions are recognised when the Group has a present obligation as a result of a past event, it is probable that 
the Group will be required to settle that obligation and a reliable estimate can be made of the amount and timing 
of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present 
obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. 
Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount 
is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third 
party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the 
amount of the receivable can be measured reliably. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
54
NOTES TO THE FINANCIAL STATEMENTS
year ended 31 December 2015
2.  Significant accounting policies continued
Decommissioning provision
A provision for decommissioning the Group’s oil and gas assets is recognised in full when the related facilities 
are installed or acquired. The extent to which a provision is required depends on the legal requirements for 
decommissioning, the costs and timing of work and the discount rate to be applied. A corresponding adjustment 
to property, plant and equipment of an amount equivalent to the provision is also recognised. This is subsequently 
depreciated as part of the asset and included in depletion expense in the statement of comprehensive income. 
Changes in the estimated timing of decommissioning or decommissioning cost estimates are accounted for 
prospectively by recording an adjustment to the provision, and a corresponding adjustment to property, plant 
and equipment. The unwinding of discount on the decommissioning provision is classified in the consolidated 
statement of comprehensive income as finance costs. 
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all of the risks and 
rewards of ownership to the lessee. All other leases are classified as operating leases. Rentals payable under 
operating leases are charged to income on a straight line basis over the term of the lease.
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are 
assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the 
cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
To the extent that variable rate borrowings are used to finance a qualifying asset and are hedged in an effective 
cash flow hedge of interest rate risk, the effective portion of the derivative is recognised in other comprehensive 
income and released to profit or loss when the qualifying asset impacts profit or loss. To the extent that fixed rate 
borrowings are used to finance a qualifying asset and are hedged in an effective fair value hedge of interest rate 
risk, the capitalised borrowing costs reflect the hedged interest rate.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on 
qualifying assets is deducted from the borrowing costs eligible for capitalisation.
Foreign currencies
For the purpose of the consolidated financial statements, the results and financial position of each group company 
are expressed in US Dollars, which is the presentation currency for the consolidated financial statements.
The Group’s income, and the majority of its costs, are denominated in US Dollars. The remainder of the costs are 
denominated in other currencies, predominantly Sterling and Nigerian Naira. The Group also has foreign currency 
denominated liabilities. Exposures to exchange rate fluctuations therefore arise. The Directors currently believe that 
foreign currency risk is at an acceptable level.
Exchange differences are recognised in profit or loss in the period in which they arise.
Taxation
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of 
assets and liabilities in the financial statements and the corresponding tax bases used in the computation of 
taxable profit, and is accounted for using the balance sheet liability method. Deferred tax assets are recognised to 
the extent that it is probable that taxable profits will be available against which deductible temporary differences 
can be utilised.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent 
that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be 
recovered. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
55
Strategic Report Governance Financial Statements Other information
2.  Significant accounting policies continued
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or 
the asset is realised based on tax laws and rates that have been enacted or substantively enacted at the balance 
sheet date. Deferred tax is charged or credited in the income statement, except when it relates to items charged or 
credited in other comprehensive income, in which case the deferred tax is also dealt with in other comprehensive 
income.
Financial instruments
Financial assets and financial liabilities are recognised on the balance sheet when the Company or Group has 
become a party to the contractual provisions of the instrument.
Trade and other receivables
Trade receivables are measured at amortised cost.
Trade and other payables
Accounts payable are measured at amortised cost.
Financial liabilities and equity
Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the 
substance of the contractual arrangement.
Capital risk management
Details of significant accounting policies and methods adopted, including the criteria for recognition, the basis of 
measurement and the basis on which income and expenses are recognised, in respect of each class of financial 
asset, financial liability and equity instrument are disclosed in note 30 to the financial statements.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all 
of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct 
issue costs.
Other financial liabilities
Other financial liabilities are initially measured at fair value, net of transaction costs.
Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with 
interest expense recorded on an effective yield basis.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating 
interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated 
future cash payments through the expected life of the financial liability to the net carrying amount on initial 
recognition.
Share-based payments
Equity settled share-based payments are measured at the fair value of the equity instruments at the grant date. 
The fair value includes the effect of non-market-based vesting conditions. Details regarding the determination of 
the fair value of equity settled share-based transactions are set out in note 29.
The fair value determined at the grant date of the equity settled share-based payments is expensed on a straight-
line basis over the vesting period, based on the Group’s estimate of equity instruments that will eventually vest. 
At each balance sheet date, the Group revises its estimate of the number of the equity instruments expected to 
vest as a result of the effect of non-market-based vesting conditions. The impact of the revision of the original 
estimates, if any, is recognised in profit or loss such that the cumulative expense reflects the revised estimate, with 
a corresponding adjustment to equity reserves.
Pension costs
Payments to defined contribution retirement benefit scheme are charged as an expense as they fall due. The Group 
had no defined benefit schemes in place during the years presented. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
56
NOTES TO THE FINANCIAL STATEMENTS
year ended 31 December 2015
3. Critical accounting judgements and estimates
In the application of the Company and the Group’s accounting policies, which are described in note 2, the Directors 
are required to make critical accounting judgments and assumptions. The assumptions are based on historical 
experience and other factors that are considered to be relevant.
The following are the critical judgements that the Directors have made in the process of applying the Company 
and the Group’s accounting policies and that have the most significant effect on the amounts recognised in the 
financial statements.
Exploration and evaluation assets (Note 11)
The accounting for exploration and evaluation (“E&E”) assets requires management to make certain estimates 
and assumptions, including whether exploratory wells have discovered economically recoverable quantities 
of reserves. Designations are sometimes revised as new information becomes available. If an exploratory well 
encounters hydrocarbons, but further appraisal activity is required in order to conclude whether the hydrocarbons 
are economically recoverable, the well costs remain capitalised as long as sufficient progress is being made in 
assessing the economic and operating viability of the well. Criteria used in making this determination include 
evaluation of the reservoir characteristics and hydrocarbon properties, expected additional development activities, 
commercial evaluation and regulatory matters. The concept of ‘sufficient progress’ is an area of judgement, and it is 
possible to have exploratory costs remain capitalised for several years while additional drilling is performed or the 
Group seeks government, regulatory or partner approval of development plans.
Impairment indicators (Notes 11, 12)
The Group monitors internal and external indicators of impairment relating to E&E assets and property, plant and 
equipment. For E&E assets the following are examples of the types of indicators used:
• The entity’s right to explore in an area has expired or will expire in the near future without renewal;
• No further exploration or evaluation is planned or budgeted;
•  The decision to discontinue exploration and evaluation in an area because of the absence of commercial 
reserves; or
•  Sufficient data exists to indicate that the book value will not be fully recovered from future development and 
production.
For development and producing oil and gas properties, the following are examples of the indicators used:
• A significant and unexpected decline in the asset’s capital market value or likely future revenue;
• A significant change in the asset’s reserves assessment;
• Significant changes in the technological, market, economic or legal environments for the asset; or
•  Evidence is available to indicate obsolescence or physical damage of an asset, or that it is underperforming 
expectations.
The assessment of impairment indicators requires the exercise of judgement. If an impairment indicator exists, 
then the recoverable amounts of the cash-generating units and/or individual assets are determined based on the 
higher of value-in-use and fair values less costs of disposal calculations. These require the use of estimates and 
assumptions, such as future oil and natural gas prices, life of field, discount rates, operating costs, future capital 
requirements, decommissioning costs, exploration potential, reserves and operating performance. These estimates 
and assumptions are subject to risk and uncertainty. Therefore, there is a possibility that changes in circumstances 
will impact these projections, which may impact the recoverable amount of assets and/or Cash Generating Units 
(CGUs). Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
57
Strategic Report Governance Financial Statements Other information
3. Critical accounting judgements and estimates continued
OML 40 licence extension (Note 12)
In line with the licence agreement, the Group has an option to request an extension of up to 20 years on the OML 
40 licence at the current licence expiry date of June 2019, at additional cost, provided the terms of OML 40 have 
been complied with. There is a precedent for extension of licences in Nigeria and management believe that it is 
more likely than not that an extension of the licence to 2026 can be obtained. Any failure to secure the renewal 
of the OML 40 licence would have a material adverse impact on the Group’s estimated reserves and resources 
outlined earlier in this report and hence the Group’s ability to generate revenue beyond June 2019. An assumption 
that the licence is not renewed beyond its current expiry date of June 2019 does not however have a material 
impact on the reported financial results for 2015, including the depletion, depreciation and amortisation charge and 
the decommissioning liability recognised in the current year or the carrying value of the Group’s interest in OML 40 
as at 31 December 2015.
Ubima carry arrangement (Note 11)
Under the terms of the Ubima sale and purchase agreement, the Group has agreed to fund capital and operating 
expenditure in respect of both its 40% interest in the Ubima asset and the remaining 60% owned by All Grace 
Energy Limited. The Group is exposed to substantially all the risks and rewards of the Ubima asset until the 
commencement of production, at which point, the amounts paid on behalf of All Grace Energy Limited would start 
to be recovered from future oil and gas revenue. On this basis, and in accordance with the Group’s accounting 
policy, the Group has recognised all of its own costs and the costs borne on behalf of All Grace Energy Limited 
incurred since acquisition of the Ubima asset ($1.1 million) (2014: $1.0 million) as additions to the Group’s E&E assets.
Amounts payable to partners in oil and gas arrangements (Note 16)
In line with the Joint Operating Agreement (‘JOA’), the Group is responsible for its share of expenditures incurred 
on OML 40 in respect of its participating interest, on the basis that the operator’s estimated expenditures are 
reasonably incurred based on the approved programme and budget. From time to time, management disputes 
such expenditures on the basis that they do not meet these criteria, and when this occurs management accrues at 
the period end for its best estimate of the amounts payable to the operator. Consequently, the amounts recognised 
as accruals as at 31 December 2015 reflect management’s best estimate of amounts that have been incurred in 
accordance with the JOA and that will ultimately be paid to settle its obligations in this regard. To the extent 
additional amounts have been claimed by the operator which are being disputed, management consider any 
liability in this respect to be remote.
Contingent liability (Note 32)
The Group’s subsidiary Wester Ord Oil & Gas (Nigeria) Limited may become, subject to certain conditions (see 
below), ultimately liable to pay a production bonus of $3 million to All Grace Energy Limited in respect of the 
transfer of a 40% interest in the Ubima Field. The payment is contingent on both receiving Nigerian Ministerial 
Consent to the transfer and attaining production volume of 2,000 barrels gross of crude oil per day on average 
over a thirty day period. Management consider that the asset is still in the exploration and evaluation stage, the 
Group is required to obtain DPR approval for a field development plan (“FDP”) and subsequently, be successful in 
developing and reaching production for the above obligation to arise. These events are not within the control of the 
Group and further, it is not uncommon in the oil and gas industry for these contingent events/milestones not to be 
achieved on any given E&E project. On this basis management has disclosed this amount as a contingent liability.
Estimates
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet 
date that may have a significant risk of carrying a material adjustment to the carrying amount of assets and 
liabilities within the next financial year are discussed below. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
58
NOTES TO THE FINANCIAL STATEMENTS
year ended 31 December 2015
3. Critical accounting judgements and estimates continued
Carrying value of oil and gas assets (Note 12)
The carrying value of oil and gas assets is subject to judgement over their recoverable value. The calculation of 
recoverable value requires estimates of future cash flows within complex value-in-use models. Key assumptions 
and estimates in the cash flow models relate to commodity prices, discount rates that are adjusted to reflect risk 
specific to individual assets, commercial reserves and the related cost and production profiles.
Management assesses the Group’s oil and gas assets for indicators of impairment at least annually with reference 
to indicators as defined in IAS 36. Note 12 discloses the carrying value of tangible oil and gas assets. Due to the 
prevailing low oil prices, management have performed a full impairment review of the carrying value of the Group’s 
interest in OML 40 as at 31 December 2015 assuming a life of field to 2026, an oil price profile benchmarked 
to ICE commodity forward prices (to end 2017 and thereafter based on analysts’ forecasts) at 31 December 
2015, management’s best estimates of proved and probable reserves and a 10% post-tax discount rate. Based 
on this calculation, no impairment of the carrying value of the Group’s oil and gas assets was identified as at 
31 December 2015.
Decommissioning provision (Note 19)
The Group has significant obligations to decommission and remove oil and gas facilities from its OML 40 licence 
at the end of the production period currently estimated to be 2026 – see the note on OML 40 licence extension 
above. Legal and constructive obligations associated with the retirement of non-current assets are recognised at 
their fair value at the time the obligations are incurred. Upon initial recognition of a liability, that cost is capitalised as 
part of the related non-current asset and allocated to expense over the useful life of the asset. Management apply 
judgement in deciding on an appropriate inflation rate to estimate costs in the future and also apply judgement in 
selecting a discount rate that reflects the time value of money and the risks specific to the liability, and in estimating 
the likelihood that the licence will be extended after its initial period, as further described in note 19.
The costs of decommissioning are reviewed annually. A review of all decommissioning cost estimates was 
undertaken by an independent specialist in 2013. This has been reassessed by the same independent specialist in 
early 2015, at the request of the Directors, and updated for the purposes of the 2015 financial statements. Provision 
for environmental clean-up and remediation costs is based on current legal and constructive requirements, 
technology and price levels.
It is difficult to estimate the costs of these decommissioning and removal activities, which are based on current 
regulations and technology, considering relevant risks and uncertainties. Most of the removal activities will be 
undertaken many years into the future and the removal technology and costs are constantly changing. As a 
result, the initial recognition of the liability and the capitalised cost associated with decommissioning and removal 
obligations, and the subsequent adjustment of these balance sheet items, involve the application of significant 
accounting judgement, further details of which are provided in note 19.
Commercial reserves
Proved and probable reserves are estimates of the amount of oil and gas that can be economically extracted from 
the Group’s oil and gas assets and changes are reflected prospectively. The Group estimates its reserves using 
standard recognised evaluation techniques. The estimate is reviewed annually.
Proved and probable reserves are determined using estimates of oil and gas in place, recovery factors and future 
commodity prices, the latter having an impact on the total amount of recoverable reserves. Future development 
costs are estimated taking into account the level of development required to produce the reserves by reference to 
operators, where applicable, and internal engineers.
Reserves estimates are inherently uncertain, especially in the early stages of a field’s life, and are routinely revised 
over the producing lives of oil and gas fields as new information becomes available and as economic conditions 
evolve. Such revisions may impact the Group’s future financial position and results, in particular, in relation to DD&A 
and impairment testing of oil and gas property, plant and equipment. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
59
Strategic Report Governance Financial Statements Other information
4. Revenue and operating expenses
An analysis of the group’s revenue is as follows:
Group
2015
$000’s
Group
2014
$000’s
Sale of oil 18,108 11,698
18,108 11,698
Revenue derives from an offtake contract with its partner, Shell Western Supply and Trading Limited.
Operating expenses are stated after charging/(crediting):
2015
$000’s
2014
$000’s
Depreciation on operational assets 4,423 1,308
Amortisation of other intangible assets 1,405 531
Royalties 3,313 1,812
Reversal of accruals – (8,250)
(Reversal of provision)/provision** (2,250) 2,250
5. Loss for the year (Group)
The loss before tax for the year is stated after charging/(crediting):
2015
$000’s
2014
$000’s
Depreciation on property, plant and equipment (note 12) 4,657 1,440
Amortisation of other intangible assets (note 11) 1,405 531
Net foreign exchange gains (389) (141)
Wages, salaries and other employment costs* 11,712 10,621
Reversal of accruals – (8,250)
(Reversal of provision)/provision** (2,250) 2,250
*  Includes costs of $772,000 (2014: $1,050,000) relating to non-executive directors’ fees and other temporary employment costs not included in note 7 below.
**  Reversal of provision relating to amounts potentially payable under an agreement with a service provider for logistical and general support services. No 
invoices have been received by the Group since 2011 in respect of this agreement, and no payments are expected to be received. In addition, under the 
agreement any invoices which might be received would need to be approved by the Group at its sole discretion before payment. Consequently, management 
believe any liability in this respect is now remote (see note 32). Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
60
NOTES TO THE FINANCIAL STATEMENTS
year ended 31 December 2015
6. Auditor’s remuneration
The analysis of auditor’s remuneration is as follows:
2015
$000’s
2014 
$000’s
Fee payable to the Company’s auditor for the audit of the Company’s annual accounts 314 209
The audit of the Company’s subsidiaries pursuant to legislation 128 126
Total audit fees 442 335
2015
$000’s
2014
$000’s
Fees payable to the Company’s auditor and their associates for other services to the Group 
Tax compliance services 15 28
Tax advisory services 41 32
Other assurance services 43 25
Total non-audit fees 99 85
The tax services relate to UK and overseas tax advice, controlled foreign company rules and transfer pricing advice.
The other assurance services relate to non-audit procedures on the Interim financial statements.
7. Staff costs
The average monthly number of employees (including Executive Directors) was:
2015
No.
2014
No.
Management 4 3
Technical 19 9
Administration 19 19
42 31
Their aggregate remuneration comprised:
2015
$000’s
2014
$000’s
Wages and salaries* 8,708 6,112
Social security costs 910 752
Share-based payments 812 1,508
Pension costs 577 461
11,007 8,833
* 2014 Wages and salaries costs include costs of contractors who are also included in head count.
The Group operates a defined contribution pension scheme, and has no obligation to pay any amounts other  
than the contributions. Obligations are recognised as staff costs and are expensed to the income statement  
in the periods during which related services are rendered by employees. Contributions owed to the scheme at  
31 December 2015 amounted to $37,000 (2014: $21,000). During the year, the remuneration of the highest paid 
director was £497,000. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
61
Strategic Report Governance Financial Statements Other information
8. Finance costs
2015
$000’s
2014
$000’s
Unwinding of discount on decommissioning provision (note 19) 264 328
RBL interest expense 1,492 11
Cost of obtaining loan finance facility* 1,706 1,173
Interest and fees charged on JV billings (153) (9)
3,309 1,503
 
* Relates to historical fees associated with obtaining and extending the Bridge loan facility which were expensed over the availability period of the facility.
9. Tax
2015
$000’s
2014
$000’s
Current tax charge – 215
Deferred tax (credit) (2,812) (784)
Total tax (credit) for the year (2,812) (569)
The standard rate of tax for the year is 65.75% (2014: 65.75%), being the current applicable rate of Nigerian 
Petroleum Profits Tax. 
The total tax charge can be reconciled to the loss per the income statement as follows:
2015
$000’s
2014
$000’s
Loss before tax on continuing operations (9,574) (16,866)
Loss on activities multiplied by the relevant rate of tax of 65.75 % (2014: 65.75%) (6,295) (11,089)
Impact of tax rate differences (30,479) (23,529)
Temporary differences on which no deferred tax is recognised 3,160 1,359
Non-deductible expenses for tax purposes 120 215
Brought-forward losses utilised in the year – –
Losses not utilised in the period on which no deferred tax is recognised 33,494 33,044
Adjustments in respect of prior years – 215
Recognition of previously unrecognised deferred tax asset 2,812 (784)
Total taxation 2,812 (569)
The following are the major deferred tax assets recognised by the Group and movements thereon during the 
current and prior reporting period.  Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
62
NOTES TO THE FINANCIAL STATEMENTS
year ended 31 December 2015
9. Tax continued
Other
Group
 temporary 
difference
$’000s
As at 1 January and 31 December 2014 784
Credit to income 2,812
As at 31 December 2015 3,596
Pioneer tax relief
When granted, Pioneer tax relief provides relief from Petroleum Profits tax for an initial period of three years and 
can be extended on an annual basis, at the agreement of the tax authorities, for an additional two years. Net 
aggregate tax losses arising in the Pioneer relief period are available for carry forward to offset taxable profits 
arising in future periods, whilst losses generated prior to commencement of production and Pioneer tax status 
must be utilised to offset taxable profits generated prior to claiming the benefit of Pioneer tax relief. 
The Company benefits from a three year tax relief period, with two further one year extension periods available on 
successful application. During the Pioneer tax relief period accumulated tax losses are required to be offset against 
taxable profits prior to applying the benefit of the tax relief period. In the event that the Company is required to 
apply for the two one-year extensions, management has made a judgement in relation to the Pioneer tax relief 
period in that they are confident the Group will be successful in obtaining the two annual extensions to the Pioneer 
tax relief period when the initial 3 year period expires in May 2017.
As at 31 December 2015, the Group has taxable losses of $184 million (2014: $130 million) for which no deferred tax 
asset has been recognised as it is not probable that there will be future taxable profits against which the asset will 
be offset. In particular, Elcrest Exploration and Production Nigeria Limited, which accounts for the majority of these 
tax losses ($167 million) (2014: $119 million), was granted Pioneer tax status on OML 40 during 2014. On expiry of 
Pioneer tax status, Elcrest is expected to be paying tax at 65.75% for five years and at 85% thereafter.
The Group has recognised a deferred tax asset of $3.6 million as at 31 December 2015 (2014: $0.8 million) in 
relation to the temporary difference that arises between the net book value and the tax written down value of  
the oil and gas assets. Capital allowances can be deferred during the Pioneer tax relief period and will be available 
following the tax relief period, whilst the book value of the asset is depreciated following commencement  
of production. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
63
Strategic Report Governance Financial Statements Other information
10. Earnings per share
Earnings per share (‘EPS’) is the amount of post-tax profit attributable to each share.
Diluted EPS takes into account the dilutive effect of share option plans being exercised.
From continuing operations
The calculation of the basic and diluted earnings per share is based on the following data:
Earnings
2015
$000’s
2014
$000’s
Earnings for the purpose of the basic earnings per share being net profit attributable  
to owners of the Company
20,404 10,671
Earnings for the purposes of basic and diluted earnings per share 20,404 10,671
Number of shares 2015
000’s
2014
000’s
Weighted average number of Ordinary Shares for the purposes of basic earnings  
per share
155,263 147,882
Equity options – 201
Weighted average number of Ordinary Shares used in the calculation of diluted  
earnings per share
155,263 148,083
From continuing operations
Year 
ended
2015
$
Year
ended
2014
$
Basic 0.13 0.07
Diluted 0.13 0.07
 
All activities relate to continuing operations.
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume 
conversion of all dilutive potential ordinary shares. The Company only has one class of ordinary share which have 
the potential to be dilutive, being the share options issued to employees and Directors (see note 29 for details). At 
the end of 2015 none of the options in issue are considered dilutive.
There were no shares issued during 2015 (see note 20). Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
64
NOTES TO THE FINANCIAL STATEMENTS
year ended 31 December 2015
11. Intangible oil and gas assets
Group
Exploration 
and 
evaluation 
assets
$000’s
Other 
intangible 
assets
$000’s
Total 
$000’s
Cost
At 1 January 2014 – – –
Additions 7,950 3,936 11,886
At 31 December 2014 7,950 3,936 11,886
Additions 886 – 886
Effect of changes to decommissioning estimates (note 19) 216 – 216
At 31 December 2015 9,052 3,936 12,988
Amortisation
At 1 January 2014 – – –
Charge for the year – (531) (531)
At 31 December 2014 – (531) (531)
Charge for the year – (1,405) (1,405)
At 31 December 2015 – (1,936) (1,936)
Carrying amount
Balance at 1 January 2014 – – –
Balance at 31 December 2014 7,950 3,405 11,355
Balance at 31 December 2015 9,052 2,000 11,052
 
The Group’s oil & gas exploration and evaluation assets at 31 December 2015 relate to the Group’s interest in the 
Ubima marginal field in Nigeria.
In August 2014, the Group’s subsidiary Wester Ord Oil & Gas (Nigeria) Limited (‘Wester Ord’) acquired a 40% 
participating interest in the Ubima field from All Grace Energy Limited (“All Grace”). Wester Ord paid a signature 
bonus of $7 million at completion and, contingent on both gross production of 2,000 bopd over thirty days and 
receipt of Nigerian Ministerial Consent to the transfer, a production bonus of $3 million will become payable. This 
amount has not been provided in the financial statements as at 31 December 2015. It has been disclosed as a 
contingent liability (note 32).
The Group has considered the definitions set out in IFRS 3 ‘Business Combinations’, and has concluded that a 
business has not been acquired and has accounted for the transaction as an asset acquisition as set out in the 
significant accounting policies on pages 50 to 55.
Wester Ord has agreed to fund 100% of the initial work programme and will be entitled to 88% of production cash 
flow until the partner costs have been recovered. This carried interest arrangement represents, in substance, a 
disposal of exploration risks and rewards by All Grace.
The other intangible asset relates to the approval fee paid on grant of Pioneer tax status during 2014 (note 9). The 
cost is being amortised on a straight line basis over the maximum expected tax relief period of three years with 
two further annual periods of extension (note 9), and the charge for the year has been included within operating 
expenses in the income statement for the year ended 31 December 2015 ($1.4 million) (2014: $0.53 million). Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
65
Strategic Report Governance Financial Statements Other information
12. Property, plant and equipment
The Group Note
Fixtures and 
equipment
$000’s
Motor vehicles
$000’s
Oil and gas 
development
assets
$000’s
Total
$000’s
Cost
At 1 January 2014 687 95 174,655 175,437
Additions 299 – 14,139 14,438
Disposals (88) – (88)
At 31 December 2014 898 95 188,794 189,787
Additions 651 90 2,364 3,104
Non-cash decommissioning additions 19 – – (2,978) (2,978)
At 31 December 2015 1,549 185 188,180 189,913
Accumulated depreciation
At 1 January 2014 (234) (84) – (318)
Charge for the year (240) (7) (1,193) (1,440)
Elimination on disposal 85 – – 85
At 31 December 2014 (389) (91) (1,193) (1,673)
Charge for the year (358) (23) (4,276) (4,657)
At 31 December 2015 (747) (114) (5,469) (6,330)
Carrying amount
At 31 December 2015 802 71 182,711 183,585
At 31 December 2014 509 4 187,601 188,114
 
The Group’s oil and gas development and production assets at 31 December 2015 and 31 December 2014 relate to 
the Group’s interest in OML 40 in Nigeria. An amount of $0.9 million (2014: $6.3 million) was classified as under 
development in relation to this asset as at the year end.
The Group has recognised a depletion, depreciation and amortisation charge for the year of $4.3 million (2014:  
$1.2 million).
The Group has paid amounts totalling $2.1 million, on behalf of the OML 40 joint venture, as part of the continuing 
development of the assets which are included within PP&E. The Group is seeking reimbursement for these 
amounts, but the timing of recovery is uncertain and as such no debtor has been recognised. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
66
NOTES TO THE FINANCIAL STATEMENTS
year ended 31 December 2015
12. Property, plant and equipment continued
The Company – Fixtures and equipment
Total
$000’s
Cost
At 1 January 2014 415
Additions 226
Disposals (88)
At 31 December 2014 553
Additions 442
At 31 December 2015 995
Accumulated depreciation
At 1 January 2014 (148)
Charge for the year (133)
Eliminated on disposal 85
At 31 December 2014 (196)
Charge for the year (234)
At 31 December 2015 (430)
Carrying amount
At 31 December 2015 565
At 31 December 2014 357 Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
67
Strategic Report Governance Financial Statements Other information
13.  Investments in Group undertakings
Company
$000’s
Cost and net book value at 1 January 2014 167,227
Additions 14,187
At 1 January 2015 181,414
Additions 7,836
At 31 December 2015 189,250
The additions in the year relate to the Company’s investment in Westport Oil Limited being subscription for shares 
in cash. 
The Group’s subsidiaries are listed below:
Nature of entity
Place of 
incorporation
and operation
Proportion 
of ownership 
interest
Proportion of 
voting power 
held
Eland Oil & Gas (Nigeria) Limited Oil and Gas Exploration  
and Production
Nigeria 100% 100%
Elcrest Exploration and Production 
Nigeria Limited
Oil and Gas Exploration 
and Production
Nigeria 45% 45%
Elstar Exploration and Production 
Nigeria Limited (dormant)
Oil and Gas Exploration 
and Production
Nigeria 100% 100%
Wester Ord Oil & Gas (Nigeria) 
Limited
Oil and Gas Exploration 
and Production
Nigeria 100% 100%
Westport Oil Limited Financing Jersey 100% 100%
Tarland Oil Holdings Limited Holding Company Jersey 100% 100%
Wester Ord Oil and Gas Limited Holding Company Jersey 100% 100%
In accordance with the Group’s accounting policy on page 51, Elcrest Exploration and Production Nigeria Limited 
has been consolidated because it is controlled by the Company. The Company has the power to govern the 
financial and operating policies for the following reasons:
•  the Company is entitled to appoint a number of Directors to the Board such that it can control decision making.
•  in the event of disagreement amongst the Board of Directors, decisions are reached by shareholder vote and 
the Company has the ability, through the combined effect of a Shareholders Agreement, Loan Agreement and 
Share Charge, to direct the votes of the 55% shareholding that it does not own.
14. Inventory
Group
2015
$000’s
Group
2014
$000’s
Spare parts 353 353
353 353 Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
68
NOTES TO THE FINANCIAL STATEMENTS
year ended 31 December 2015
15. Trade and other receivables
Group
2015
$000’s
Company
2015
$000’s
Group
2014
$000’s
Company
2014
$000’s
Amounts due from Group undertakings (note 30) – 48,530 – 48,009
Other debtors 4,033 78 433 401
Prepayments 973 403 3,997 1,484
5,006 49,011 4,430 49,894
 
The Directors consider that the carrying value of trade and other receivables is approximately equal to their fair value.
16. Trade and other payables
Group
2015
$000’s
Company
2015
$000’s
Group
2014
$000’s
Company
2014
$000’s
Amounts due to Group undertakings (note 30) – 903 – 444
Trade creditors 193 197 1,079 549
Accruals and deferred income 15,379 2,257 28,718 2,843
Corporation tax – – 214 214
Joint Venture creditors 5,263 – 1,220 –
Other creditors (note 22) – – 5,000 5,000
20,835 3,357 36,231 9,050
 
Trade and other payables principally comprise amounts outstanding for trade purchases and ongoing costs.  
The Directors consider that the carrying amounts of trade and other payables are approximate to their fair values. 
All trade and other payables are denominated in Sterling, US dollars, Euros or Nigerian Naira.
Other creditors relates to a forward purchase arrangement, see note 22.
The Company has financial risk management policies in place to ensure that all payables to third parties are paid 
within the credit timeframe and no interest has been charged by any suppliers as a result of late payment of 
invoices during the period.
17. Other Provisions
Group
2015
$000’s
Company
2015
$000’s
Group
2014
$000’s
Company
2014
$000’s
At 1 January 2,250 – – –
Provision in the year – – 2,250 –
Release of provision (2,250) – – –
At 31 December – – 2,250 –
The short-term provision as at 31 December 2014 of $2.25 million represented management’s best estimate of the 
Group’s liability under an agreement with a service provider for logistical and general support services from 2011 to 
31 December 2014 (see note 5). 
Management consider the likelihood of any payment to be remote and the provision has therefore been released 
(see note 32). Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
69
Strategic Report Governance Financial Statements Other information
18. Borrowings
Bank loan (or bridging facility):
2015
$000’s
2014
$000’s
Secured bank loan facilities with maturity date 24 February 2015:
Amount used – –
Amount unused – 22,000
– 22,000
 
The $22 million loan facility (the ‘Facility’) with Standard Chartered Bank, which the Company initially entered into 
on 24 August 2012 for an 18 month period, was extended for a further 12 months to 24 February 2015. The Facility 
was available to the Group principally to allow Elcrest to meet its capital expenditure requirements. 
Interest was payable on amounts outstanding from time to time at a rate equivalent to USD LIBOR plus a margin of 
9%. All conditions precedent to access the Facility were met during December 2014. No amounts had been drawn 
as at expiry on 24 February 2015 and the facility was replaced by a reserve based facility as follows: 
Reserves based lending facility:
2015
$000’s
2014
$000’s
Reserve based facility agreement with maturity date 30 June 2019:
Amount used 15,000 –
Amount unused 10,400 35,000
25,400 35,000
 
The reserves based facility with Standard Chartered Bank (SCB), which Westport (the Group’s finance vehicle) 
entered into on 31 December 2014 (the “RBL”) is available to the Group to fund, amongst other things, capital 
expenditure obligations in respect of Elcrest’s participating interest in OML 40 and for the Group’s working capital 
purposes up to $5 million. 
The RBL, to which SCB has committed an initial $35 million, has a maturity of four and a half years from  
31 December 2014 and is repayable as set out in note 30 on page 79. Interest is payable on amounts outstanding 
on a quarterly basis at a rate equivalent to USD LIBOR plus a margin of 7.75%.
The amount available under the RBL is subject to a cap determined by the lower of the borrowing base amount 
and the committed facility amount. The borrowing base amount is calculated on OML 40 production and stands 
currently at $25.4m. It is re-determined every six months in accordance with the terms of the RBL.
The RBL is secured over the Company’s shares in Elcrest, and by way of a debenture which creates a charge over 
certain assets of the Group, including its bank accounts. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
70
NOTES TO THE FINANCIAL STATEMENTS
year ended 31 December 2015
18. Borrowings continued
The amount used under the RBL is reconciled to the carrying amount of the loan as at the Balance Sheet date  
as follows:
2015
$000’s
2014
$000’s
Amount used 15,000 –
Arrangement fees and costs deducted (1,778) –
Interest charged 1,431 –
Interest and fees paid (1,286) –
13,367
19. Decommissioning Provision
2015
$000’s
2014
$000’s
At 1 January 12,306 11,978
Unwinding of discount (note 8) 264 328
Effect of changes to decommissioning estimates (note 12) (2,978) –
Additions (note 11) 216 –
At 31 December 9,809 12,306
 
The provision for decommissioning is in respect of the Group’s interest in OML 40 and Ubima. The provision 
represents the present value of amounts that are expected to be incurred in 2026, discounted to the present value 
using a 2.75% discount rate (2014: 2.75%) and an inflation rate of 2% (2014: 4.25%).
A corresponding amount equivalent to the provision is recognised as part of the cost of the related intangible 
assets and property, plant and equipment. The amount recognised is the estimated cost of decommissioning, 
discounted to its net present value, and is reassessed each year in accordance with local conditions and 
requirements, reflecting management’s best estimates.
The unwinding of the discount on the decommissioning is included in the Income Statement as a finance cost (see 
note 8).
Changes in the estimated timing of decommissioning or decommissioning estimates are dealt with prospectively 
by recording an adjustment to the provision and a corresponding adjustment to property, plant and equipment.
During 2013 an independent specialist evaluated the decommissioning costs for the licence and the study led to 
the adjustment of the amounts previously provided for. Management believes the estimates continue to form a 
reasonable basis for the expected future costs of decommissioning, which are now expected to be incurred in 
2026. The effect of this change along with revisions to the assumed inflation and discount rates, is reflected in the 
above table. Furthermore, an independent specialist carried out a further validation in 2015 of the assumptions and 
data contained within the 2013 report and confirmed there was no material change to the position. The effect in 
future periods is impractical to calculate, as the provision in future periods may be affected by the drilling of future 
wells, and changes to inflation or discounting assumptions. 
Previously it was assumed that costs would be incurred at the expiry of the licence in 2019. There is precedent for 
extension of licences in Nigeria and management are now confident that an extension can be obtained. The date 
the costs are expected to be incurred has therefore been reassessed as 2026. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
71
Strategic Report Governance Financial Statements Other information
20. Share capital 
The Authorised share capital of the Company at 31 December 2015 was 175,000,000 ordinary shares of £0.10 each 
and 175,000,000 deferred shares of £0.90 each.
2015
$000’s
2014
$000’s
Authorised:
175,000,000 ordinary shares of £1 each – 284,463
10,000,000 non-voting ordinary shares of £0.10 each 1,625 –
165,000,000 ordinary shares of £0.10 each 26,821 –
175,000,000 deferred shares of £0.90 each 256,017 –
Allotted, issued and paid:
145,263,214 ordinary shares of £1 each – 231,391
10,000,000 non-voting shares of £1 each – 16,648
145,263,214 voting ordinary shares of £0.10 each 23,139 –
10,000,000 non-voting ordinary shares of £0.10 each 1,665 –
155,263,214 deferred shares of £0.90 each 223,235 –
248,039 248,039
 
A Share Capital re-organisation was approved at the June 2015 AGM to subdivide the £1 nominal shares into voting 
ordinary shares and deferred shares.
The effect of the re-organisation is to decrease the nominal value of the voting ordinary shares of £1 to £0.10 each. 
The creation of a class of deferred shares of £0.90 each is to ensure that the re-organisation does not result in an 
unlawful reduction of capital in the company. 
The deferred shares do not entitle holders to receive notice of or attend and vote at any general meeting of the 
company or to receive a dividend or other distribution or to participate in any return on capital on a winding up or 
other than the nominal amount paid on such shares following a substantial distribution to the holders of ordinary 
shares in the company. As such the deferred shares do not form part of the calculation of earnings per share.
Each new voting ordinary share will have the same rights and benefits as the existing voting ordinary shares.
There were no share issues during 2015.
21. Equity reserve
 Group and Company
Equity
Reserve
$000’s
Balance at 1 January 2015 –
Transfer to retained losses –
Balance at 31 December 2015 –
 
This reserve represented the equity component of convertible debt instruments which was transferred to retained 
losses in 2014. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
72
NOTES TO THE FINANCIAL STATEMENTS
year ended 31 December 2015
22. Other reserve
Group and Company
Other Reserve
$000’s
Balance as at 1 January 2015 (15,542)
Cancellation of Forward purchase arrangement over the shares of a subsidiary 5,000
Balance as at 31 December 2015 (10,542)
 
This reserve relates primarily to costs incurred on funds raised on AIM in 2012.
The forward purchase arrangement related to an agreement between the Company and Starcrest Nigeria Energy 
Limited for the purchase of an additional 4% share capital in Elcrest Exploration and Production (Nigeria) Limited. 
Management has subsequently received legal opinion that, since the timeline for the acquisition has expired and 
both parties failed to exercise any rights, the forward purchase agreement is null and void. 
23. Retained earnings/(losses)
Group
$000’s
Company
$000’s
Balance at 1 January 2014 (11,717) (1,376)
(Loss)/profit for the year 10,671 (7,236)
Credit to equity-settled share-based payments 1,508 1,508
Transfer from equity reserve 8,008 8,008
Balance as at 1 January 2015 8,470 904
Profit/(loss) for the year 20,404 (4,062)
Credit to equity-settled share-based payments 812 812
Other adjustments (274) –
Balance as at 31 December 2015 29,412 (2,346)
 
24.  Translation reserve
Prior to 1 January 2013 exchange differences relating to the translation of the net assets of the Company from its 
functional currency (British pounds sterling) into the Group’s presentation currency, US Dollars, were recognised 
directly in the translation reserve. From 1 January 2013 the Company’s functional currency changed to US Dollars. 
As a result there is no movement on the reserve in the current year or the prior year.
Group
$000’s
Company
$000’s
Balance at 31 December 2014 and 31 December 2015 1,429 1,071 Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
73
Strategic Report Governance Financial Statements Other information
25. Non-controlling interests
Summarised financial information in respect of each of the Group’s subsidiaries that has a material non-controlling 
interest is set out below.
The summarised financial information below represents amounts before intragroup eliminations.
Elcrest Exploration and Production Nigeria Limited
2015
$'000s
2014
$'000s
Current assets 7,748 4,137
Non-current assets 188,388 191,828
Current liabilities (368,840) (316,556)
Non-current liabilities (9,587) (12,306)
Equity attributable to owners of the company 81,995 59,767
Non-controlling interest (100,296) (73,130)
Revenue 18,108 11,698
Expenses (67,502) (60,729)
Loss for the year (49,394) (49,031)
Loss attributable to owners of the Company (22,228) (22,063)
Loss attributable to the non-controlling interests (27,166) (26,968)
Total comprehensive loss attributable to owners of the Company (22,228) (22,063)
Total comprehensive loss attributable to non-controlling interests (27,166) (26,968)
Total comprehensive loss for the year (49,394) (49,031)
Dividends paid to non-controlling interests – –
Net cash (outflow)/inflow from operating activities (11,044) 3,170
Net cash outflow from investing activities (3,945) (7,613)
Net cash inflow from financing activities 15,255 7,187
Net cash inflow 266 2,744
Group $000’s
Balance at 1 January 2014 (46,162)
Share of loss for the year (26,968)
Balance at 1 January 2015 (73,130)
Share of loss for the year (27,166)
Balance as at 31 December 2015 (100,296) Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
74
26. Notes to the cash flow statement
Group
2015
$000’s
2014
$000’s
Loss for the year before tax (9,574) (16,866)
Adjustments for:
Increase/(decrease) in provisions (note 17) (2,250) 2,250
Share-based payments (note 29) 812 1,508
Finance costs (note 8) 3,309 1,503
Amortisation of intangible assets (note 11) 1,405 531
Depreciation of property, plant and equipment (note 12) 4,657 1,440
Unrealised foreign exchange losses on operating activities 37 238
Loss on sale of property, plant and equipment – 1
Other adjustments (274) –
Non-cash movement loan liability (145) –
7,551 7,471
Operating cash flows before movements in working capital (2,023) (9,395)
(Decrease)/Increase in trade and other operating payables (966) 4,645
(Increase) in trade and other operating receivables (576) (589)
(1,542) 4,056
Net cash used in operating activities (3,565) (5,339)
Company
2015
$000’s
2014
$000’s
Loss for the year before tax (4,061) (7,021)
Adjustments for:
Depreciation of property, plant and equipment (note 12) 234 133
Net finance (income) (2,306) (1,818)
Share-based payments (note 29) 812 1,508
Unrealised foreign exchange losses on operating activities 39 222
Loss on sale of property, plant and equipment – 1
(1,221) 46
Operating cash flows before movements in working capital (5,282) (6,975)
(Decrease)/increase in trade and other operating payables (480) 809
Increase/ (decrease) in trade and other operating receivables 4,386 (3,393)
3,906 (2,584)
Net cash used in operating activities (1,376) (9,559)
NOTES TO THE FINANCIAL STATEMENTS
year ended 31 December 2015 Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
75
Strategic Report Governance Financial Statements Other information
27. Segmental information
The Directors believe that the Group has only one reportable operating and geographic segment, which is the 
exploration and production of oil and gas reserves in Nigeria. All operations are classified as continuing. The Board 
monitors the operating results of its operating segment for the purpose of making decisions and performance 
assessment. Segmental performance is evaluated based on operating profit or loss and is reviewed consistently 
with operating profit and loss in the consolidated financial statements.
28. Operating lease arrangements
Group
2015
$000’s
Company
2015
$000’s
Group
2014
$000’s
Company
2014
$000’s
Minimum lease payments under operating leases recognised as 
an expense in the year
940 362 961 311
 
At the balance sheet date, the Group and Company had outstanding commitments for future minimum lease payments 
under non-cancellable operating leases, which fall due as follows
2015
$000’s
2014 
(restated)
$000’s
Within one year 312 347
In the second to fifth years inclusive 1,038 1,311
After five years 503 753
1,853 2,411
 
Operating lease payments represent rentals payable by the Group for certain of its office properties and staff 
residences.
29. Share-based payments
Equity settled share option scheme
The Company operates an employee share option plan. Initially, share options were granted on 3 December 2012 
to all Directors and key personnel of the Group comprising of 2,669,763 Founder options exercisable at £1.00 each, 
8,210,000 share options exercisable at £1.00 each and 368,500 share options exercisable at £1.13 each. During 2014, 
65,000 share options at £1.25 each and 1,250,000 share options were granted to employees at £1.16 each. The 
options will be exercisable in full if the average closing price per Share over any continuous thirty (30) day period, 
ignoring any days which are non-dealing days for AIM, occurring wholly during the period of 10 years from the date 
of grant, is equal to or greater than one hundred and fifty percent (150%) of the Placing Price. Management has 
determined a 70% probability of this condition being satisfied. All of the share options, except for Founder Options 
which had a vesting period of two years, have a vesting period of three years from the date of grant. The £1.00 
Founder options are exercisable for a period of eight years (less one day) from the second anniversary of the date 
of the grant. The other options are exercisable for a period of seven years (less one day) from the third anniversary 
of the date of the grant. If the options remain unexercised after the day preceding the tenth anniversary of the date 
of the grant the options expire. 
No options were granted in 2015. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
76
29. Share-based payments continued
Details of the share options outstanding during the year are as follows:
2015 2014
Number of 
share options
Weighted
 Average 
Exercise 
Price (£)
Number of 
share options
Weighted
Average
Exercise
Price (£)
Outstanding at the start of the year 12,563,263 1.02 11,248,263 1.00
Granted during the year – – 1,315,000 1.16
Outstanding at the end of the year 12,563,263 1.02 12,563,263 1.02
Exercisable at the end of the year – – – –
 
The options outstanding at 31 December 2015 had a weighted average exercise price of £1.02, and a weighted 
average remaining contractual life of six years and eight months. The aggregate of the estimated fair values of 
the options granted in 2015 was Nil (2014: £245,000). No options were issued in 2015. The inputs into the Black-
Scholes model during 2014 were as follows:
Year-end closing share price 71p
Weighted-average exercise price 115.5p
Expected volatility 25%
Expected life 3 years
Risk-free rate 2.5%
Dividend yield nil
 
Expected volatility was determined by calculating the historical volatility of the Company’s share price from 
the date of admission to AIM to the financial year end. The expected life used in the model has been adjusted, 
based on management’s best estimate, for the effects of non-transferability, exercise restrictions, and behavioral 
considerations.
The Group recognised total expenses of $811,606 (2014:$1,508,000) related to equity settled share-based payment 
transactions in 2015.
30. Financial instruments
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while 
maximising the return to shareholders through the optimisation of the debt and equity balance. The Group’s overall 
strategy remains unchanged from 2014.
The capital structure of the Group includes debt drawn down from the RBL of $15 million as at 31 December 2015. 
Equity attributable to equity holders of the parent comprises issued capital, reserves and retained earnings as 
disclosed in notes 20 to 24.
The Group is not subject to any externally imposed capital requirements.
NOTES TO THE FINANCIAL STATEMENTS
year ended 31 December 2015 Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
77
Strategic Report Governance Financial Statements Other information
30. Financial instruments continued
Principal financial instruments
The principal financial instruments used by the Group and the Company, from which financial instrument risk arises, 
are as follows:
• Trade and other receivables
• Trade and other payables
• Cash and bank balances
• Bank loans
Categories of financial instruments 
At 31 December 2015 and 2014, the Group and Company held the following financial assets:
Group
2015
$000’s
Company
2015
$000’s
Group
2014
$000’s
Company
2014
$000’s
Trade and other receivables (note 15) 4,075 48,530 446 48,364
Cash and bank balances 8,461 753 15,017 11,857
12,536 49,283 15,463 60,221   
 
Of the cash balances of $8.5 million (2014: $15.0 million), $7.2 million (2014: $11.3 million) was denominated in 
US Dollars, $0.6 million (2014: $3.7 million) was denominated in Sterling and $0.7 million (2014: $36,000) was 
denominated in Naira.
Credit risk management
Credit risk arises from cash and cash equivalents and deposits with banks. Cash balances are held with banks with 
an ‘A’ rating or better where possible. There is believed to be insignificant credit risk associated with trade, other 
debtors and prepayments.
At 31 December 2015, the Group and Company held the following financial liabilities at amortised cost:
Group
2015
$000’s
Company
2015
$000’s
Group
2014
$000’s
Company
2014
$000’s
Trade creditors (note 16) 193 197 1,079 549
Amounts due to Group undertakings (note 16) – 903 – 444
Accruals and deferred income (note 16) 15,379 2,257 28,718 2,843
JV creditor (note 16) 5,263 – 1,220 –
Other creditors (note 16) – – 5,000 5,000
Bank Loans 13,368 – – –
34,203 3,357 36,017 8,836
Market risk
The Group’s and Company’s activities expose them primarily to the financial risks of changes in foreign currency 
exchange rates. There has been no change to the Group’s exposure to market risk or the manner in which these 
risks are measured and managed. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
78
30. Financial instruments continued
Foreign currency risk management
With effect from 1 January 2013, the functional currency of the Company changed from Sterling to US Dollars. The 
functional currency of the Group is now US Dollars. The change was triggered by the increasing influence of the US 
Dollar on its operations as its borrowing facilities and income are borrowings denominated in US Dollars.
The Group’s income, borrowings, and the majority of its costs, are denominated in US Dollars. The remainder of the 
costs are denominated in other currencies, predominantly Sterling and Nigerian Naira. The Group also has foreign 
currency denominated assets and liabilities. Exposures to exchange rate fluctuations therefore arise. The Directors 
currently believe that foreign currency risk is at an acceptable level.
Foreign currency sensitivity analysis
Although the Group reports in US Dollars, elements of its business are conducted in Sterling and Nigerian Naira. 
The current exposure to foreign currency risk is manageable due to the predictability of transactions in these 
currencies.
If the US Dollar had strengthened by 10% against Sterling, with all other variables held constant, post tax loss for 
the year would have been $0.7 million lower mainly as a result of differences of translation of Sterling denominated 
expenditure at lower rates of exchange.
If the US Dollar had weakened by 10% against Sterling, with all other variables held constant, post tax loss for the 
year would have been $0.8 million higher mainly as a result of translating Sterling denominated expenditure at 
higher rates of exchange.
If the US Dollar had strengthened by 10% against Naira, with all other variables held constant, post tax loss for the 
year would have been $0.4 million lower mainly as a result of translating Naira denominated expenditure at higher 
rates of exchange.
If the US Dollar had weakened by 10% against Naira, with all other variables held constant, post tax loss for the 
year would have been $0.5 million higher as a result of translating Naira denominated expenditure at lower rates of 
exchange.
Liquidity risk management
Liquidity risk is the risk that the Group or Company will encounter difficulty in meeting its financial obligations as 
they fall due. Ultimate responsibility for liquidity risk management rests with the Board of Directors. In order to 
mitigate this risk, management regularly reviews liabilities to ensure these can be met as and when they fall due.
The Group manages liquidity risk by maintaining adequate cash reserves and reserve borrowing facilities and 
by continuously monitoring forecast and actual cash flows. Details of undrawn facilities that the Group has at its 
disposal to further reduce liquidity risk are set out in Note 18.
Fair value of financial instruments
The Directors consider that the carrying amounts of financial assets and financial liabilities approximate their fair 
values, unless otherwise stated.
NOTES TO THE FINANCIAL STATEMENTS
year ended 31 December 2015 Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
79
Strategic Report Governance Financial Statements Other information
30. Financial instruments continued
Maturity of financial assets and liabilities
All of the Group’s and Company’s financial assets as at 31 December 2015 are receivable within one year. On this 
basis no maturity analysis has been disclosed.
All of the Company’s financial liabilities are payable within one year. The following table as at 31 December 2015, for 
the years 2016 through 2020 and thereafter, shows the maturities of the Group’s undiscounted financial liabilities 
inclusive of any interest and fees associated with the RBL:
2016
$000s
2017
$000s
2018
$000s
2019
$000s
2020
$000s
Thereafter
$000s
Total
$000s
RBL interest 1,245 1,233 844 153 – – 3,475
RBL commitment fees 260 74 – – – – 334
Other fees (RBL) 150 150 150 75 – – 525
Principal repayment – 184 8,466 6,350 – – 15,000
Trade and other payables 20,835 – – – – – 20,835
22,490 1,641 9,460 6,578 – – 40,169
 
In comparison the following table as at 31 December 2014, for the years 2015 through 2019 and thereafter, shows 
the maturities of the Group’s undiscounted financial liabilities inclusive of any interest and fees associated with the 
RBL (all of the Company’s financial liabilities were payable within one year):
2015
$000s
2016
$000s
2017
$000s
2018
$000s
2019
$000s
Thereafter
$000s
Total
$000s
RBL interest – – – – – – –
RBL commitment fees 949 938 694 373 59 – 3,014
Other fees (RBL) 1,025 150 150 150 75 – 1,550
Principal repayment – – – – – – –
Trade and other payables 36,017 – – – – – 36,017
37,991 1,088 844 523 134 – 40,582
Financial facilities
Loan facility
The Group has a loan facility with Standard Chartered Bank. Details are given in note 18.
Interest rate risk management
As the Group utilises the RBL facility it will become exposed to potential adverse movements in the US Dollar 
LIBOR component of the rate. Based on borrowings of $15 million as at 31 December 2015, a 0.5 percentage point 
change in average interest rates over a twelve month period would increase or decrease net income or loss by 
approximately $75,000. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
80
31. Related Party Transactions
Group and Company
Loans to related parties
2015
$000’s
2014
$000’s
Loans from Eland Oil & Gas PLC to Eland Oil & Gas (Nigeria) Limited 12,054 7,742
Loans to Eland Oil & Gas (Nigeria) Limited are short term and carry interest of 5% per annum. 
Other transactions between the Company and Group undertakings
Eland 
Oil & Gas 
(Nigeria) 
Limited
$000’s
Elcrest
$000’s
Wester Ord 
Oil & Gas Ltd
$000’s
Wester Ord 
Oil & Gas 
(Nigeria) Ltd
$000’s
Westport
$000’s
Tarland
Oil and Gas
Ltd
$000’s 
Total
$’000’s
Balance at 1 January 2014 5,827 29,178 – – 51 – 35,056
Transactions during the year ended 
31 December 2014:
Management fees – 3,250 – – – – 3,250
Costs recharged 2,467 2,781 16 425 86 – 5,775
Interest on loans to related parties 664 – – – – – 664
Reimbursement of costs recharged – (4,474) – – – – (4,474)
Exchange differences (1) (2) – (1) – – (4)
Balance at 31 December 2014 8,957 30,733 16 424 137 – 40,267
Transactions during the year ended 
31 December 2015:
Management fees – 3,000 – – – – 3,000
Costs recharged 2,745 3,744 (5) 358 831 16 7,689
Interest on loans to related parties 504 – – – – – 504
Reimbursement of costs recharged (8,653) (5,579) – – (754) – (14,986)
Exchange differences (1) 1 – 1 – – 1
Balance at 31 December 2015 3,552 31,899 11 783 214 16 36,475
NOTES TO THE FINANCIAL STATEMENTS
year ended 31 December 2015 Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
81
Strategic Report Governance Financial Statements Other information
31. Related Party Transactions continued
Trading transactions
Purchase of 
services
2015
$000’s
Purchase of 
services
2014
$000’s
Novum Securities Ltd – 200
Henderson Global Investors 9 –
 
Henderson Global Investors is a related party of the Group because it is a substantial shareholder of Eland Oil & 
Gas plc.
Novum Securities Ltd is a related party of the group because Henry Turcan held directorships in both Novum 
Securities Ltd and Eland Oil and Gas PLC. 
The amount disclosed above represents outstanding amounts due to Novum Securities Ltd as at the date Henry 
Turcan was appointed to the board of directors of Eland Oil and Gas PLC. No further transactions have taken place 
with Novum Securities Ltd since his appointment.
The amounts outstanding were unsecured and had been settled as at the date of signing the 2015 accounts. 
Remuneration of key management personnel
The remuneration of the Directors, who are the key management personnel of the Group, is set out below in 
aggregate for each of the categories specified in IAS 24, Related Party Disclosures.
2015
$000’s
2014
$000’s
Wages and salaries 1,490 2,043
Pension 106 112
Social security costs 187 186
Share-based payments 390 1,136
1,968 3,477
 
Further details about the remuneration of individual directors is provided in the Directors’ Remuneration Report on 
pages 36 to 39. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
82
32. Contingent liabilities
As disclosed in note 5, a provision of $2.25m was released in the period relating to amounts potentially payable 
under an agreement with a service provider for logistical and general support services. No invoices have been 
received by the Group since 2011 in respect of this agreement, and no payments are expected to be required. In 
addition, under the agreement any invoices which might be received would need to be approved by the Group at 
its sole discretion before payment. Consequently, management believe any liability in this respect is now remote. 
As discussed in note 3, under the Joint Operating Agreement (“JOA”), the Group is responsible for its share of 
expenditures incurred on OML 40 in respect of its participating interest, on the basis that the operator’s estimated 
expenditures are reasonably incurred based on the approved programme and budget. From time to time, 
management disputes such expenditures on the basis that they do not meet these criteria, and when this occurs 
management accrues at the period end for its best estimate of the amounts payable to the operator. Consequently, 
the amounts recognised as accruals as at 31 December 2015 reflect management’s best estimate of amounts 
that have been incurred in accordance with the JOA and that will ultimately be paid to settle its obligations 
in this regard. To the extent additional amounts have been claimed by the operator which are being disputed, 
management consider any liability in this respect to be remote.
As discussed in note 3, the Group’s subsidiary Wester Ord Oil & Gas (Nigeria) Limited may become, subject 
to certain conditions, ultimately liable to pay a production bonus of $3 million to All Grace Energy Limited in 
respect of the transfer of a 40% interest in the Ubima Field. The payment is contingent on both receiving Nigerian 
Ministerial Consent to the transfer and attaining production volume of 2,000 barrels gross of crude oil per day 
on average over a thirty day period. Management consider that the asset is still in the exploration and evaluation 
stage, the Group is required to obtain DPR approval for a field development plan (“FDP”) and subsequently, be 
successful in developing and reaching production for the above obligation to arise. These events are not within the 
control of the Group and further, it is not uncommon in the oil and gas industry for these contingent  
events/milestones not to be achieved on any given E&E project. On this basis management has disclosed this 
amount as a contingent liability, but do not consider payment of the amount to be probable.
33. Post-balance sheet events
Issue of share options
In January 2016 the Group announced the granting of 1,200,000 share options to its Directors. The share options 
vest over three years and expire 10 years from the date of issue.
Forcados shut-down
Forcados, the main export terminal for OML 40 has been shut down since mid-February 2016 due to sabotage. As 
a result, no liftings from OML 40 have taken place since this time. Operators have been advised by Shell that the 
terminal will re-open in June.
Conversion of shares
In February 2016 the Group announced that Helios Natural Resources Ltd. (Helios) had requested the conversion of 
4,613,685 of its 10,000,000 non-voting ordinary shares into voting ordinary shares in the Company. Following the 
conversion, Helios held 44,213,685 voting ordinary shares in the Company, as well as 5,386,315 non-voting shares. 
Opuama-3 workover result
In April, the Group announced that the Opuama-3 workover had been flow tested, with two newly perforated 
zones flowing at a combined 10,548 barrels of oil per day. Once the Forcados terminal re-opens, it is expected that 
Opuama-3 will resume production. 
Placing to raise $18.5 million
In April 2016 the Group announced that it had successfully undertaken an equity placing which raised $18.5m at a 
price of 34p/share. A total of 37,352,941 Placing Shares were placed, comprising 36,442,441 voting ordinary shares 
of 10 pence each, and 910,500 non-voting right ordinary shares of 10 pence each. Eland’s enlarged ordinary share 
capital immediately following the issue of the Placing Shares was 186,319,340 voting ordinary shares and 6,296,815 
non-voting right ordinary shares.
Forward sales to offtake partner
In May, the Group made forward sales to its offtake partner for $3m, in part to cover any further potential 
interruptions at the Forcados Terminal. 
NOTES TO THE FINANCIAL STATEMENTS
year ended 31 December 2015 Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
83
Strategic Report Governance Financial Statements Other information
FORWARD-LOOKING STATEMENTS
Cautionary statement regarding forward-looking statements
This Annual Report may contain forward-looking statements which are made in good faith and are based on 
current expectations or beliefs, as well as assumptions about future events. You can sometimes, but not always, 
identify these statements by the use of a date in the future or such words as “will”, “anticipate”, “estimate”, 
“expect”, “project”, “intend”, “plan”, “should”, “may”, “assume” and other similar words. By their nature, forward-
looking statements are inherently predictive and speculative and involve risk and uncertainty because they relate 
to events, and depend on circumstances, that will occur in the future. You should not place undue reliance on 
these forward-looking statements, which are not a guarantee of future performance and are subject to factors that 
could cause actual results to differ materially from those expressed or implied by these statements. The Company 
undertakes no obligation to update any forward-looking statements contained in this Annual Report, whether as a 
result of new information, future events or otherwise. Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
84
SHAREHOLDER INFORMATION
United Kingdom 
Registered Office 
34 Albyn Place  
Aberdeen 
AB10 1FW
Head Office 
Seabrokers House  
Prospect Road  
Westhill 
AB32 6FE
Tel: +44 (0)1224 737300
London
2nd Floor 
43-44 New Bond Street 
London 
W1S 2SA
Tel: +44 (0)207 016 3180
Nigeria  
Lagos
Plot 1384, Tiamiyu Savage Street 
Victoria Island 
Lagos
Tel: +234 1 6310920
info@elandoilandgas.com
www.elandoilandgas.com Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
85
Strategic Report Governance Financial Statements Other information
DIRECTORS AND ADVISERS
Directors
George Walter Mitchell Maxwell, Chief Executive Officer 
Louis Emmanuel Castro, Chief Financial Officer
Olivier Serra, Chief Financial Office Designate
Henry George Wilson, Executive Chairman
Robert Alexander Lambert, Non-Executive Director & Senior Independent Director 
Russell Seth Harvey, Non-Executive Director
Dr. Richard Norris, Non-Executive Director  
Henry Turcan, Non-Executive Director
Secretary
Stronachs Secretaries Limited
34 Albyn Place 
Aberdeen AB10 1FW
Bankers
Standard Chartered Bank 
1 Basinghall Avenue 
London EC2V 5DD
United Kingdom
The Royal Bank of Scotland Plc 
RBS London Corporate Bank Centre 
PO Box 39952
2 1/2 Devonshire Square
London EC2M 4XJ
United Kingdom
Standard Chartered Bank 
Muhammadu Buhari Way 
Garki
Area 11 
Abuja 
Nigeria
Solicitors
Mayer Brown International
201 Bishopsgate
London EC2M 3AF
Stephenson Harwood 
1 Finsbury Circus 
London EC2M 7SH
United Kingdom
Bracewell & Giuliani (UK) LLP
Tower 42
25 Old Broad Street
London EC2N 1HQ 
United Kingdom
Streamsowers & Köhn 
16D, Akin Olugbade Street 
Victoria Island
Lagos
Nigeria
Independent Auditor 
Deloitte LLP
2 New Street Square
London EC4A 3BZ
United Kingdom Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
86
GLOSSARY
£ GB pounds sterling unless otherwise stated
$ US dollars unless otherwise stated
1P Proved Reserves
2P Proved and Probable Reserves
3P Proved plus Probable plus Possible Reserves
2D or 2D Seismic Seismic data which is acquired along a line with a ‘Shot and Receiver’ configuration that 
allows the signal-to- noise ratio to be enhanced by linear stacking of the reflections caused by 
subsurface interfaces between rocks with different acoustic properties
3D or 3D Seismic Seismic data which is acquired in a multi-azimutual pattern and processed such that the 
signal-to-noise ratio is enhanced by three dimensional stacking of the reflections caused by 
subsurface interfaces between rocks with different acoustic properties
AIM The market of that name operated by the London Stock Exchange plc
API American Petroleum Institute
bbl/bbls Barrel/barrels
Bcf Billion standard cubic feet
bpd Barrels per day
bopd Barrels of oil per day
CGU Cash generating unit
Company Eland Oil & Gas PLC
Contingent 
Resources/CR
Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from 
known accumulations by application of development projects but which are not currently 
considered to be commercially recoverable due to one or more contingencies. Contingent 
Resources are a class of discovered Recoverable Resources.
CPR Competent Person’s Report
cu ft Cubic feet
EBITDA Earnings Before Interest, Taxes, Depreciation and Amortisation
Elcrest Elcrest Exploration and Production Nigeria Limited
EIA Environmental Impact Assessment
ENI Eni S.p.A., the parent company of NAOC
E&P Exploration and Production
FCPA Foreign Corrupt Practices Act
FDP Field Development Plan
GOR Gas Oil Ratio
Group The Company and all of its subsidiaries
IAS International Accounting Standard(s)
ICE Intercontinental Exchange
IOC International Oil Company Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
87
Strategic Report Governance Financial Statements Other information
IFRS International Financial Reporting Standard(s)
JOA Joint Operating Agreement
km Kilometres
km2 Square kilometres
Lead A project associated with a potential accumulation that is currently poorly defined and 
requires more data acquisition and/or evaluation in order to be classified as a prospect
mbopd Thousands of barrels of oil per day
mmbopd Millions of barrels of oil per day
mmbbl Million barrels
mbbl Thousand barrels
NAOC Nigerian Agip Oil Company Limited
NNPC Nigerian National Petroleum Corporation
NPDC Nigerian Petroleum Development Company Ltd
NSAI Netherland, Sewell & Associates Inc.
OECD Organisation for Economic Co-operation and Development
OML 17 Oil Mining Lease 17 which contains the Ubima Marginal Field
OML 40 Oil Mining Lease 40
PPT Petroleum Profits Tax
Prospective 
Resources/PR
Those quantities of petroleum estimated, as of a given date, to be potentially recoverable 
from undiscovered accumulations by application of future development projects. Prospective 
Resources have both an associated chance of recovery and a chance of development. 
Prospective Resources are further subdivided in accordance with the level of certainty 
associated with the recoverable estimates assuming their discovery and development and may 
be sub-classified based on project maturity
Proved Developed 
Reserves
Proved Reserves that can be produced with existing wells and perforations, or from additional 
reservoirs where minimal additional capital investment is required
Proved 
Undeveloped 
Reserves
Proved Reserves that require additional capital investment to bring the oil to the surface
Proved Reserves 
(‘Proved’)
Those quantities of petroleum, which by analysis and geoscience, can be estimated with 
reasonable certainty to be commercially recoverable. It is likely that the actual remaining 
quantities recovered will exceed the estimated Proved Reserves
Probable Reserves 
(‘Probable’)
Those additional reserves that are less likely to be recovered than Proved Reserves but more 
certain to be recovered than Possible Reserves. It is equally likely that actual remaining 
quantities recovered will be greater than or less than the sum of the estimated Proved plus 
Probable Reserves
Possible Reserves 
(‘Possible’)
Those additional reserves which analysis and geoscience and engineering data suggest are 
less likely to be recovered than Probable Reserves. The total quantities ultimately recovered 
from the project have a low probability to exceed the sum of Proved plus Probable plus 
Possible Reserves Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
88
PVT Pressure, volume, temperature
QCA Quoted Companies Alliance
RPS RPS Energy Consultants Limited
RFT Repeat Formation Tester
SCB Standard Chartered Bank Plc
Shell or SPDC Shell Petroleum Development Company of Nigeria Limited unless otherwise stated
tcf Trillion standard cubic feet
Total Total E&P Nigeria Limited
GLOSSARY continued Eland Oil & Gas PLC  
Annual Report and Financial Statements 2015
2
Communiqué Associates Limited, Edinburgh www.communique-associates.co.uk
2015 OPERATIONAL HIGHLIGHTS
Eland is an AIM-listed independent oil and 
gas company focused on production and 
development in West Africa, particularly the 
highly prolific Niger Delta region of Nigeria.
OML 40 in Nigeria is Eland’s core asset
83.2
**
mmbbl (gross) 2P Reserves
Opuama and Gbetiokun Fields
 41.2
**
/
****
mmbbl (gross) 2C Resources
OML 40
4,400
bopd (gross)
year end exit rate
84
%
record facilities & pipeline  
uptime on OML 40
Ubima Field CPR published April 2016
2.4
***
mmbbl (gross) 2P Reserves
31.1
***
mmbbl (gross) 2C Resources
*  Operating expenses excluding royalties and adjusting for release of provisions (see Financial Statements, Note 5)
**  Source: Independent Report by Netherland Sewell & Associates Inc. June 2015.
***  Source: Independent Report by AGR TRACS April 2016.
****  Source: Independent Report by Netherland Sewell & Associates Inc. April 2016
+195
%
full year liftings from Elcrest  
at 341,000 bbls crude oil
 24
%
*
reduction in adjusted 
operating expenses Annual Report and
Financial Statements
2015
Eland Oil & Gas PLC 
Registered office: 
34 Albyn Place  
Aberdeen 
AB10 1FW 
Scotland
www.elandoilandgas.com
Eland Oil & Gas PLC        Annual Report and Financial Statements 2015