oil & gas
Annual Report and Financial Statements 2013
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 ELAND OIL & GAS PLC
Eland is an independent oil  
and gas company focused  
on identifying, acquiring and
developing interests in oil 
and gas assets in West Africa.
STRATEGIC REPORT
1 Highlights
2 Eland at a Glance
4 Chairman’s Statement
6 Strategy in Action – OML 40
14 Chief Executive Officer’s Report
16 Market Context – Why Nigeria
18 Financial Review
20 Key Performance Indicators
21 Corporate Social Responsibility
22 Principal Risks and Uncertainties
GOVERNANCE
24 Board of Directors
26 Senior Management
27 Directors’ Report
28 Corporate Governance Statement
30 Directors’ Responsibility Statement
31 Remuneration Report
34 Independent Auditor’s Report
FINANCIAL STATEMENTS
35 Consolidated Income Statement
36  Consolidated Statement of 
Comprehensive Income
37 Consolidated Balance Sheet
38 Company Balance Sheet
39  Consolidated Statement of Changes  
in Equity
40  Company Statement of Changes  
in Equity
41 Consolidated Cash Flow Statement 
42 Company Cash Flow Statement 
43 Notes to the Financial Statements
OTHER INFORMATION
61 Forward Looking Statements
62 Shareholder Information
63 Directors and Advisers
64 Glossary
 ` Welcome Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 1
HIGHLIGHTS
 ` Momentum into 2014
OPERATIONAL HIGHLIGHTS
 ` The results of the reserves and 
resources evaluation by NSAI of 
OML 40 demonstrated a net 2P 
reserves increase of 86% and gross  
2C resources increase of 192%.
 ` Opuama flowstation work was 
successfully completed and flowlines 
to the producing wells, Opuama 1 
and 3, have been fully replaced and 
cathodic protection has been 
re-installed.
 ` The 36km export pipeline to the 
Otumara custody transfer point 
was repaired.
 ` Oil production from the Opuama field 
commenced in February 2014 
following successful re-commissioning 
of existing infrastructure and the 
re-opening of two existing wells.
FINANCIAL HIGHLIGHTS
 ` Current cash and cash equivalents 
increased from the 2013 ending 
balance of $3.8 million to $22.8 million 
as at April 2014.
 ` The Group loss increased during 2013 
to $26.1 million from $14.2 million 
in 2012.
 ` During 2014 Eland exercised the full 
balance of options under the Solstice 
Option Agreement and the Helios 
Option Agreement, raising a total of 
£20m at 100 pence per share.
 ` The debt facility with Standard 
Chartered Bank for US$22m was 
extended in February 2014 for 
12 months. Currently the facility 
remains undrawn.
OUTLOOK
 ` Commence a seven well development 
drilling programme over 2014 and 2015 
on the Opuama field to develop the 2P 
reserves.
 ` Expected year end 2014 gross 
production exit rate from OML 40 of 
approximately 7,000 bopd.
 ` The Company will seek to enter a 
reserve-based lending facility and 
increase the debt level above the 
current $22 million, in line with the 
revised CPR. Eland Oil & Gas PLC Annual Report and Financial Statements 2013 2
2010 
 f Seed funding  
raised of £4.5 million  
and operational activities 
commence
2011 
 f Preferred bidder for 
OML 40 in Shell 
divestiture auction
2012
 f Completion of acquisition 
of an interest in the 
OML 40 licence
 f Flotation on AIM raising 
£118 million and valuing the 
Company at £135 million
 f Secured $22 million debt 
package with SCB
ELAND AT A GLANCE
OVERVIEW
Eland is an independent oil and gas company focused on identifying, 
acquiring and developing interests in oil and gas assets in West Africa, 
focused initially on Nigeria.
Eland was formed in 2010 by Les Blair and George Maxwell who previously 
held senior management positions with Addax Petroleum Corporation. 
Since then the Company has assembled an experienced Board and 
management team with over 40 years of in-country experience and 
successful track records in acquiring and developing oil and gas interests.
KEY DEVELOPMENTS
Eland’s existing asset is an interest in the OML 40 licence, onshore  
Nigeria. Production began on OML 40 in February 2014 through the 
re-commissioning of two existing wells on the Opuama field, which had 
been previously shut in by SPDC since 2006.
Aberdeen, Scotland
Our Head Office is located in Aberdeen where our 
Technical, Human Resources and Finance Teams are based.
London, England
After listing on AIM we opened the London office in  
early 2013. The office has seen expansion during the year 
and is the base for our Corporate Finance and Investor  
Relations teams. 
Abuja, Nigeria
CEO, Les Blair and our operational management team  
are based in Abuja. From there we manage our operations 
and work together closely with our partners in OML 40, 
NPDC and Starcrest.
OUR OFFICES Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 3
OML 40
STARCREST 
NIGERIA 
ENERGY LTD
NIGERIAN 
PETROLEUM 
DEVELOPMENT 
COMPANY LTD 
(‘NPDC’)
ELAND OIL & GAS 
PLC
ELCREST 
EXPLORATION 
AND PRODUCTION 
NIGERIA LIMITED
Gulf of Guinea
OML 40
OPUAMA FLOWSTATION
OTUMARA-CUSTODY
TRANSFER POINT
FORCADOS
TERMINAL
2013  
 f Laying of 3km of replacement flowlines 
to the two existing producing wells
 f Repair of the 36km export pipeline
 f Re-commissioning of the existing 
production flowstation facilities
 f New CPR increasing gross 2P reserves 
to 81.8 mmbbls
2014  
 f Commencement of production  
on the Opuama field (OML 40)
 f Planned drilling of seven  
development wells on Opuama
OUR GROUP STRUCTURE
OML 40 LOCATION
The OML 40 licence is situated within the 
Niger Delta, approximately 75km north-
west of Warri and covers an area of 
498km
2
. The environment in OML 40 
consists of shoreline and coastal 
mangrove swamps to brackish and fresh 
water fluvial swamps. The region is lightly 
populated with the indigenes living in 
dispersed riverine communities mainly 
from the Ijaw and Itsekiri ethnic groups.
Oil production 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 has gross 1P 
reserves of 38.2 mmbbls, gross 2P reserves 
of 81.8 mmbbls, gross 2C contingent 
resources of 45.3 mmbbls and a best 
estimate of 119.5 mmbbls of gross unrisked 
prospective resources. Eland Oil & Gas PLC Annual Report and Financial Statements 2013 4
CHAIRMAN’S STATEMENT
Harry Wilson
Chairman
I am pleased to introduce Eland’s second annual report which has 
seen your Company make significant progress over the year on a 
number of fronts. This has not been an easy year but despite 
experiencing delays in operations on our OML 40 licence we 
achieved first oil in early 2014, with production from the Opuama 
field largely as a result of the experienced team we have in Nigeria. 
We are now starting to see the real value of our Nigerian asset.
The focus during 2013 has been on rehabilitating the Opuama field 
working with the Operator (NPDC) to put back in production the 
two wells which were shut-in in March 2006. This has involved 
re-commissioning the flowstation facilities and wellheads as well as 
laying new flowlines and repairing the export pipeline. This enabled 
us to start production in February 2014 somewhat later than hoped 
for but with very pleasing production rates. We have also 
undertaken a major review of the prospectivity of the licence largely 
through the extensive 3D seismic data which has not previously 
been used to identify drilling targets. This resulted in a significant 
increase in net 2P reserves and 2C resources in the report by our 
reserves auditor Netherland Sewell & Associates Inc. We are 
confident of further increases as the operational work proceeds. 
The financial performance for 2013 (a loss of $26.1 million) largely 
reflects the expected increased costs as our operations in Nigeria 
gathered pace. At the end of 2013 our cash and cash equivalents 
were $3.8 million with undrawn bank debt facilities of $22 million 
which have been extended to February 2015. More recently the two 
equity options were exercised in full raising a further £20 million. We 
have also made good progress on securing advantageous tax terms 
which may result in a five year tax-free period for OML 40 in Nigeria.
I would like to thank all our stakeholders for their support and 
particularly the management and staff for their hard work and 
persistence over the year. We have a very experienced Board which 
ensures that the highest levels of corporate governance are 
maintained in the conduct of our business. James Ede-Golightly and 
Gilles Krijger have both stepped down from the Board and I would 
especially like to thank them for their contribution during the 
start-up phase of Eland. Our team is still growing and our aspiration 
is to become the leading international oil company operating 
in Nigeria.
The strategy of Eland is based on the opportunities that Nigeria 
offers and the experience of our management team based on the 
ground. The increasing awareness of Nigeria’s potential is reflected 
in the scramble for assets being disposed of by the majors in recent 
months. We are of course looking at these and other assets and 
look forward to updating our shareholders on this front and with 
further progress on OML 40 over the coming months. 
Harry Wilson
Chairman
26 May 2014 Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 5
“ We are now starting to see the real 
value of our Nigerian asset”
KEY STRENGTHS
What differentiates 
Eland?
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
`	 CEO and operational senior 
management based in Nigeria 
with strong relationships and 
local knowledge
Fantastic asset
`	 Significant development and 
exploration upside on OML 40 
as well as attractive growth 
opportunities in Nigeria
OUR STRATEGIC PRIORITIES
Increasing  
shareholder value
Ramp up production 
`	 Commence development drilling programme
Maximise oil and gas reserves 
`	 Strong focus on converting contingent and 
prospective resources into reserves through 
an optimised work programme
Increase upside 
`	 Further analysis of OML 40’s discoveries and 
prospective resources
Seek to secure further 
opportunities 
`	 Look to buy assets with a low entry cost  
and increase value through development Eland Oil & Gas PLC Annual Report and Financial Statements 2013 6
OML 40 
1
3
4
2
Opuama S
Opuama N
Amobe
Gwato
Polobo
Polobo S
Abiala N
Abiala
Abiala S
Dudu Town E
Gbetiokun West
Tongarafa
TSEK-001
OPUAMA 
FLOWSTATION
STRATEGY IN ACTION
 ` OML 40
A PORTFOLIO IN A LICENCE
OML 40 is a world-class asset with production, booked oil reserves, an 
export pipeline and plentiful contingent and prospective resources. The 
OML 40 area currently produces light oil with low GOR and has a very 
strong aquifer drive resulting in high ultimate recoveries. 
The OML 40 partnership successfully recommenced oil production from  
the Opuama field in February 2014 through the re-commissioning of the 
existing infrastructure and the re-opening of two existing wells.
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.
1. OPUAMA
Highlights
Discovered:  1972
Gross 2P:  54.2 mmbbl
Location: 92km NW of Warri
Reservoir Depth: 7,600 – 8,900ft
History
 ` OML 40 was awarded to SPDC in 1964.
 ` The Opuama field was in production from 1975 until 2006 and 
during that period produced 43.4 mmbbl. 
 ` In 2006, SPDC undertook a controlled shut down of OML  
40 due to community disturbances and pipeline disruption 
near the Forcados Oil Terminal.
 ` In September 2012 Elcrest Exploration & Production Nigeria 
Limited purchased a 45% interest in the OML 40 licence.
 ` The Opuama field was returned to production in  
February 2014.
1. Opuama
2. Gbetiokun
3. Polobo
4. Abiala
 Oil field
 CR – Oil Discoveries
  PR – Based on 
3D seismic
  Leads – Based on 
2D seismic
 Gas discovery Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 7
2012 2013
19.2
38.2
OML 40 Gross 1P Oil Reserves 
(mmbbl)
2012 2013
71.8
81.8
OML 40 Gross 2P Oil Reserves  
(mmbbl)
2012 2013
15.5
45.3
OML 40 Gross 2C Contingent 
Oil Resources 
(mmbbl)
Source: Data from 2012 McDaniel CPR 
and 2013 NSAI CPR
Source: 2012 McDaniel CPR 
and 2013 NSAI CPR
Source: 2012 McDaniel CPR 
and 2013 NSAI CPR
2012 2013
27.2
119.5
OML 40 P50 Gross 
Prospective Oil Resources 
(mmbbl)
Source: Data from 2012 McDaniel CPR 
and 2013 NSAI CPR
The Opuama field was discovered in 1972 and hydrocarbons 
were found at 12 different levels. Of these 12 reservoirs, the 
largest four account for over 90% of the total field reserves.  
The reservoirs contain light crudes with API gravities ranging 
from 47.5� in the shallow reservoirs to 37.8� in the deep and 
saturated reservoirs. There has been very little pressure 
depletion over the 30 plus years of production, which indicates  
a strong aquifer support and consequently leading to very high 
total ultimate oil recoveries.
The oil production from the Opuama wells is received at the 
Opuama flowstation where it is, after initial treatment, pumped 
via the Otumara manifold into the Shell-operated Trans Escravos 
Pipeline network to the Forcados Oil Terminal.
Opuama Gross 2P Oil Reserves
54.2 mmbbl
FIRST OIL AND HOW WE GOT THERE
 ` Oil production from the Opuama field was re-started in 
February 2014 through the successful re-commissioning of 
existing infrastructure and the re-opening of existing wells 
Opuama 1 and Opuama 3 (dual completion).
 ` Replacement of the three flowlines of the start-up wells. These 
flowlines have been trenched and overlaid with protective 
concrete mats at major water crossings.
 ` Rehabiliation work on the flowstation.
 ` Repair of the 8” and 10” sections of the export pipeline which 
make up the first 12km of the export pipeline as well as the 
24km long final 12” section leading to the custody transfer 
point at Otumara.
WHAT NEXT?
A detailed field review was undertaken in 2013 resulting in a Field 
Development Plan (‘FDP’) for the exploitation of the remaining 
reserves. The FDP defines drilling a total of seven new 
development wells, which aim at infill targets in the main reservoirs 
D1000, D2000, D5000 and E2000. It also includes carrying out 
appraisals with the possibility of developments on three so-called 
intra reservoirs, which carry at present total contingent resources 
of some 8 mmbbl. All new wells will be drilled from a central 
location near the flowstation minimising the environmental and 
social impact, increasing efficiency and ensuring security and 
safety of the facilities.
The development concept is:
 ` Drill seven new wells 
 − Four slightly deviated wells on the D1000 and D2000 
reservoirs, 
 − Two horizontal wells on the E2000 reservoir,
 − One deviated well on the D5000 reservoir.
 ` Appraisal of deeper reservoirs in the earlier development  
wells to assess further development potential and to obtain 
depth control. 
The wells will be drilled with a swamp rig after dredging of the 
existing access canals to enable easy access. After completion of 
the wells the Opuama gross production is expected to reach over 
25,000 bopd.
OML 40 Gross Oil Reserves (mmbbl)*
Field Proved (1P) Proved + Probable (2P) Proved + Probable + Possible (3P)
Opuama 31.9 54.2 71.2
Gbetiokun 6.3 27.6 34.2
Total before royalties 38.2 81.8 105.4
Total after royalties 30.6 65.5 84.3
* Source: CPR as prepared by Netherland, Sewell & Associates Inc. as at 30 June 2013 Eland Oil & Gas PLC Annual Report and Financial Statements 2013 8
Opuama S
Opuama N
Gwato
Polobo
Amobe
Tsekelewu N
Polobo S
Abiala N
Abiala
Abiala S
Dudu Town E
Gbetiokun
West
Tongarafa
Gbetiokun
STRATEGY IN ACTION (CONTINUED)
 ` OML 40
OTHER RESERVES IN OML 40
OML 40 is an underdeveloped asset and currently has one producing 
field, the Opuama field. The Gbetiokun field has been fully appraised and 
a number of development drilling locations identified, as part of a full Field 
Development Plan.
2. GBETIOKUN
Highlights
Discovered: 1987
Gross 2P: 27.6 mmbbl
Location: 63km NW of Warri
Reservoir Depth: 4,500 – 10,000ft
Distance from Opuama flowstation: 27km to the SE
History
 ` Gbetiokun is located 63km 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 the 
extension of the field in OML 49 is called Bime.
 ` The field was discovered by well Gbetiokun 1 in 1987 and 
presently four wells have been drilled on the structure (two in 
OML 40 and two in OML 49).
 ` The Bime wells are located close to the licence boundary 
between OML 40 and OML 49 and provided valuable 
information about the eastern flank of the field. The extension 
to the east is very limited with the second Bime appraisal well 
not finding any hydrocarbons. 
 ` The latest appraisal well Gbetiokun 2 was drilled in August 1991 
on the western flank of the field where it found a significant 
number of reservoirs containing hydrocarbons. 
A total of 20 hydrocarbon reservoirs have been identified  
in the Gbetiokun field. The crude is generally characterised as 
having a low viscosity, high API gravities from 39-41� and also 
being under-saturated.
PVT samples were taken in the discovery well and the results  
of the PVT analysis have indicated the presence of good quality 
oil. The reservoirs are similar to those found in Opuama and it  
is considered very likely that they will have moderate to strong 
aquifer drive.
Detailed geological studies, supplemented with development 
studies, resulted in a Field Development Plan (FDP). The field is 
planned to be produced through an early production facility 
which contains equipment needed for oil treatment, pumping 
and gas compression. A 30km wet crude export pipeline is 
planned to join the Opuama-Otumara export pipeline system.
Gbetiokun Gross 2P Oil Reserves
27.6 mmbbl Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 9 Eland Oil & Gas PLC Annual Report and Financial Statements 2013 10
Opuama S
Opuama N
Gwato
Polobo
Amobe
Tsekelewu N
Polobo S
Abiala N
Abiala
Abiala S
Dudu Town E
Gbetiokun
Opuama S
Opuama N
Gwato
Polobo
Amobe
Tsekelewu N
Polobo S
Abiala N
Abiala
Abiala S
Dudu Town E
Gbetiokun
STRATEGY IN ACTION (CONTINUED)
 ` OML 40
CONTINGENT RESOURCES
In addition to Opuama and Gbetiokun, there are five other discovered and 
undeveloped fields in OML 40, the largest of which are discussed below. 
These fields may provide a conveyor belt of reserve additions as they are 
appraised further. 
3. POLOBO
Highlights
Discovered: 1972
Gross 2C: 21.5 mmbbl
Location: OML 40 West
Reservoir Depth: 6,000 – 6,100ft
Distance from Opuama flowstation: 11km to the NW
The Polobo discovery was made in 1972 based on 2D seismic. 
The full structure was probably not evident from the 2D seismic 
interpretation. However, following the acquisition of 3D seismic, 
Polobo has been upgraded to an exciting contingent resource.
Polobo is 11km north-west of the Opuama flowstation and could 
be easily tied into the existing facilities. The Polobo discovery 
well was drilled to a depth of 9,712ft. Oil was found over a 96ft 
thick interval. RFT tests confirmed the presence of under-
saturated oil with an API gravity of 47�. An appraisal well is 
planned in the near future and, if successful, provides the 
opportunity for an accelerated development with production 
through the Opuama flowstation.
4. ABIALA
Highlights
Discovered: 1989
Gross 2C: 16.1 mmbbl
Location: OML 40 North East
Reservoir Depth: 6,800 – 11,000ft
Distance from Opuama flowstation: 24km to the NE
The Abiala discovery was made in 1989 and is located in the 
north-east of OML 40 near the northern boundary of the licence. 
Using 3D reprocessed seismic in 2009 it became clear that the 
Abiala discovery well had crossed a fault between the Abiala 
North and Abiala South blocks effectively proving up further 
potential in both fault blocks. Abiala therefore has significant 
near-field potential which will need to be appraised. 
Future development wells will be designed to capture all the 
reservoirs within a particular fault block, whilst pilot holes will be 
drilled and plugged back as a cheap and efficient way of exploring 
the near-field prospective upside. Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 11
2012 2013
19.2
38.2
OML 40 1P Gross Oil Reserves 
(mmbbl)
2012 2013
71.8
81.8
OML 40 2P Gross Oil Reserves  
(mmbbl)
2012 2013
15.5
45.3
OML 40 Gross 2C Contingent 
Oil Resources 
(mmbbl)
Source: 2012 McDaniel CPR 
and 2013 NSAI CPR
Source: 2012 McDaniel CPR 
and 2013 NSAI CPR
Source: 2012 McDaniel CPR 
and 2013 NSAI CPR
2012 2013
27.2
119.5
OML 40 Gross Best Estimate 
Prospective Oil Resources 
(mmbbl)
Source: 2012 McDaniel CPR 
and 2013 NSAI CPR
Polobo Gross 2C Oil Resources
21.5 mmbbl
Abiala Gross 2C Oil Resources
16.1 mmbbl
OML 40’s other contingent resources are the Ugbo and 
Adagbassa Creek fields. Ugbo was discovered in 1991 and is 
located in the central-eastern part of OML 40. Ugbo 1 
discovered a shallow oil-bearing reservoir of some 24ft above a 
possible oil-water contact. The top 10ft was tested and flowed 
200 bopd with an API gravity of 37.8° and a 5% water cut. 
Seismic analysis poses some challenges, and Ugbo is still under 
study. Currently the hydrocarbon volumes around the well are 
considered relatively small. However, it carries significant 
prospective resources with a best estimate of 15.7 mmbbl, 
which makes it an attractive target to explore further. 
Adagbassa Creek was discovered in 1971 and is located in the 
centre of OML 40. Three wells have been drilled by the previous 
operator, SPDC. The discovery well found two hydrocarbon 
intervals: the shallow C4 reservoir at 4,875-4,910ft, and a deeper 
E3 reservoir at 9,132-9,178ft. The C4 reservoir was reported to be 
oil bearing, but RFTs taken only recovered drilling fluids. The E3 
reservoir was production tested and produced 1,300 bopd with 
a GOR of 1,850 cu ft/bbl. Estimated contingent resources are 
1.5 mmbbl of oil and 294 Bcf of gas. It is planned to acquire 
additional 3D seismic over this area with further subsurface 
studies determining the potential for future appraisal drilling. 
This well is likely to be deepened to explore the potential of 
Adagbassa Deep.
CONTINGENT RESOURCES
OML 40 Unrisked Gross Contingent Oil Resources (mmbbl)*
Discovery Low estimate (1C) Best estimate (2C) High estimate (3C)
Abiala North 0.9 2.0 4.1
Abiala South 4.3 14.1 70.7
Adagbassa Creek 0.6 1.5 2.8
Opuama 1.9 5.6 12.8
Polobo 10.4 21.5 47.1
Ugbo 0.3 0.6 1.1
Total 18.4 45.3 138.6
* Source: CPR as prepared by Netherland, Sewell & Associates Inc. as at 30 June 2013 Eland Oil & Gas PLC Annual Report and Financial Statements 2013 12
STRATEGY IN ACTION (CONTINUED)
 ` OML 40
PROSPECTIVE RESOURCES AND LEADS
Beyond the discovered fields is a larger prize consisting of 
already identified near-field opportunities and prospects, which 
can be drilled in the near future using the drilling rigs scheduled 
for the Opuama and Gbetiokun development drilling.
OML 40 
 Oil field
 CR – Oil Discoveries
  PR – Based on 
3D seismic
  Leads – Based on 
2D seismic
 Gas discovery
In the longer term the resource base will be augmented through 
developing leads (additional 3D surveys and detailed studies) 
into drillable prospects. Many of these were already identified by 
the previous operator SPDC. In-house studies by Eland based on 
reprocessed 3D surveys have not only confirmed these SPDC 
concepts, but added additional prospects and leads. The 
recoverable volumes of the prospects and leads qualify as 
prospective resources. 
In the western area of OML 40 the prospects are Amobe, Polobo 
South and Opuama North. Furthermore, there could be possible 
extensions of Ojumole and Tsekelewu (outside OML 40) into the 
OML 40 block. Also, a number of isolated closures have been 
identified but these are generally too small on their own to 
warrant an economic development. The possible extensions and 
isolated closures have not been incorporated in our present 
analysis, nor in the prospective resources.
In the eastern area of OML 40 there are a large number of 
prospects covered by 3D seismic surveys. The central part of 
OML 40 is not covered by 3D seismic surveys. In this corridor, a 
number of 2D seismic lines have been shot. The previous 
operator has identified significant prospects in this area, which 
have been classified as leads until this corridor is covered by 3D 
seismic as well. 
Finally, a number of deep turbidite plays are recognised, namely 
Adagbassa Deep, Polobo Deep, Abiala Deep, and Gbetiokun 
Deep, but these studies are too immature to carry prospective 
resources and require further detailed studies to mature as 
drillable prospects. Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 13
2012 2013
19.2
38.2
OML 40 1P Gross Oil Reserves 
(mmbbl)
2012 2013
71.8
81.8
OML 40 2P Gross Oil Reserves  
(mmbbl)
2012 2013
15.5
45.3
OML 40 Gross 2C Contingent 
Oil Resources 
(mmbbl)
Source: 2012 McDaniel CPR 
and 2013 NSAI CPR
Source: 2012 McDaniel CPR 
and 2013 NSAI CPR
Source: 2012 McDaniel CPR 
and 2013 NSAI CPR
2012 2013
27.2
119.5
OML 40 Gross Best Estimate 
Prospective Oil Resources 
(mmbbl)
Source: 2012 McDaniel CPR 
and 2013 NSAI CPR
WHAT NEXT?
 ` Eland will be embarking on an exploration campaign to 
increase the present proven resource base.
 ` This will be done through drilling exploration wells on the 
best defined prospects, and trying to maximise the value 
of existing and planned infrastructure.
 ` A 3D survey is planned to firm up the leads within the 
150km
2
 corridor between the existing surveys.
OML 40 Gross Best Estimate Prospective Resources
119.5 mmbbl
OML 40 Unrisked Gross Prospective Oil Resources (mmbbl)*
Prospect Low estimate Best estimate High estimate 
Abiala Northeast 4.0 11.0 24.5
Abiala South 5.7 13.3 26.4
Amobe 4.1 11.8 24.2
Dudu Town 5.9 13.2 23.8
Dudu Town East 4.7 10.5 19.4
Gbetiokun West 8.1 16.7 31.7
Gbetiokun South 3.9 8.5 17.4
Old Nana Town 2.8 6.5 12.4
Ugbo East 2.5 6.3 13.3
Ugbo North 4.0 9.4 19.6
Other Prospects/Leads 4.8 12.3 25.8
Total 50.5 119.5 238.5
* Source: CPR as prepared by Netherland, Sewell & Associates Inc. as at 30 June 2013 Eland Oil & Gas PLC Annual Report and Financial Statements 2013 14
CHIEF EXECUTIVE OFFICER’S REPORT
Les Blair
Chief Executive Officer
Eland, from its formation in 2010, has been focused on building 
a portfolio of upstream oil and gas assets in West Africa, 
particularly in Nigeria. In September 2012 we completed the 
acquisition of the initial part of that portfolio when the Group 
acquired a 45% equity in OML 40, through a special purpose 
vehicle, and listed the Company on the AIM market in London.
Re-commencement of Production
In 2013 our key focus was the restart of production from the two 
existing wells on the Opuama field. This consisted of relaying the 
field flowlines from wells 1 and 3 to the Opuama flowstation and 
the rehabilitation of the flowstation itself.
In addition the 36km export pipeline from Opuama to Otumara, 
where it joins the Shell-operated Trans Escravos Pipeline 
network, was repaired and tested.
In the early part of 2014 we commenced production on OML 40. 
Our initial production analysis has been encouraging with 
average production stabilising at over 3,500 bopd.
Our initial production has been restricted due to multiple factors. 
One of the most significant factors was a subsea pipeline leak at 
Shell’s Forcados Terminal in early March. This resulted in 
Opuama being shut in for most of March and early April. The 
Terminal re-commenced operations in mid April.
As expected with a re-entry and rehabilitation programme there 
have been a number of teething issues on the field with 
infrastructure and the 36km export pipeline which have 
necessitated shut downs of between one and three weeks to 
carry out repairs. Despite these enforced delays the 
commencement of production is a significant step forward for 
the Company. The task now is to improve on the reliability of the 
infrastructure and attain the consistent production levels which 
are achievable and maximise the value of the ensuing revenue.
The OML 40 Licence
OML 40 is a portfolio in itself, located in a highly prospective oil 
basin. It has sizeable reserves and a contingent resources base with 
significant exploration upside. The new competent person’s report 
(CPR), commissioned during the year, was issued by Netherland 
Sewell & Associates Inc. and contains significantly higher volumes 
than previously certified following a detailed re-evaluation of the 
full technical database provided by the previous operator. Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 15
The new CPR details gross 1P and 2P reserves of 38.2 mmbbls and 
81.8 mmbbls respectively. Furthermore, we have seen an increase in 
our contingent resources (2C) from 15.5 mmbbls to 45.3 mmbbls 
and a best estimate for unrisked prospective resources of 119.5 
mmbbl. These details have been determined on 3D seismic 
interpretation and information from the eighteen wells drilled on 
the licence.
We anticipate that there are significant gas volumes on the 
licence particularly at deeper levels. In the future we will look to 
source commercial opportunities for this gas.
The Nigerian Oil & Gas Landscape
The past few years have seen a period of dramatic change in the 
onshore licence landscape of Nigeria. The IOCs, which have held 
the majority of the onshore licences since the inception of oil and 
gas production in Nigeria, have started divesting many of these 
interests. The IOCs have either sold, or are in the process of selling, 
participating interests in licences considered as non-strategic.
The majority of the export pipeline network for the onshore fields in 
Nigeria was installed in the mid-1970s and will require to be fully 
replaced in the years ahead. The Nigerian Government has 
provided significant tax incentives to encourage such regeneration 
and redevelopment of the onshore oil and gas sector. 
Onshore drilling activity has been at a low level in Nigeria for a 
number of years. The advent of improved drilling technologies 
provides an opportunity to increase flow rates and maximise 
recovery from these onshore fields. This opportunity exists 
within OML 40 as all of the existing wells were drilled in the 
1970s. Utilising modern drilling and production technologies 
allows greater recovery and significantly lower finding and 
development costs for every barrel produced.
The divestitures by the IOCs that have taken place over the last 
three years have resulted in the creation of a number of smaller 
Nigerian based independents. Further divestitures will increase 
the opportunities for these companies.
Health, Safety, Environmental and Social Responsibility
We owe a duty of care to the communities and the environment 
in which we operate and we stand to be held accountable for 
our actions.
We maintain focus in our communities on their right to good 
health, education and employment in the development of the 
natural resources.
Some of the key deliverables within our community programmes 
are the provision of electricity, drinking water, education, medical 
care and employment, all of which are absent to a large degree 
throughout much of the Niger Delta.
One of our key planned community projects is the provision 
of free electricity to the community surrounding the Opuama 
flowstation. This particular project has the added benefit that the 
electricity is produced using associated gas from oil production. 
Utilising the associated gas in this way also significantly reduces 
the flare gas produced at the flowstation, reducing the impact on 
the environment. This particular community project creates a 
mutually beneficial interdependency between the oil company 
and the local community.
Major activities planned in 2014
Throughout 2013, planning for the 2014 drilling campaign was 
progressed with the preparation of a Field Development Plan (FDP) 
on the Opuama Field. This drilling campaign will include significant 
dredging activities to allow access for the drilling rig which will drill 
horizontal and directional wells to fully develop the field.
We also plan to replace the export pipeline to allow an increased 
capacity of up to 100,000 bopd and we are also considering the 
installation of an additional export route from OML 40. The 
drilling campaign on Opuama is planned to start during the 
second half of 2014 and will continue into 2015. With existing 
production and the planned new wells we expect an 
approximate exit rate of 7,000 bopd.
Outlook
The oil and gas business has always been very competitive in 
Nigeria and in West Africa and never more so than in recent 
years of sustained high oil prices. We continue to evaluate new 
venture opportunities, but our primary focus remains on 
maximising the value of our existing assets. 
I would like to sincerely thank our management and staff, who 
with the full support of our Board, business partners and 
shareholders, have made our significant progress since listing in 
September 2012 possible. I have no doubt that during 2014 we 
will continue to develop a business of which we can all be proud 
and deliver the value that is in OML 40.
Les Blair
Chief Executive Officer
26 May 2014
“ Our primary focus remains  
on maximising the value of  
our existing asset.” Eland Oil & Gas PLC Annual Report and Financial Statements 2013 16
Nigeria Angola
2,417
13.8
Production* (mbopd)
Sub-Saharan Africa
Sudan &
S. Sudan
Congo Equatorial 
guinea
Gabon Chad
1,784
296 283
245
113
101
Nigeria Angola
37.2 13.8
Sudan &
S. Sudan
Congo Equatorial 
guinea
Gabon Chad
1,784
5.0
12.7
2.0
1.6 1.7
1.5
Proved reserves* (billion bbls) 
Sub-Saharan Africa
Nigeria Angola
2,417
13.8
Production* (mbopd)
Sub-Saharan Africa
Sudan &
S. Sudan
Congo Equatorial 
guinea
Gabon Chad
1,784
296 283
245
113
101
Nigeria Angola
37.2 13.8
Sudan &
S. Sudan
Congo Equatorial 
guinea
Gabon Chad
1,784
5.0
12.7
2.0
1.6 1.7
1.5
Proved reserves* (billion bbls) 
Sub-Saharan Africa
MARKET CONTEXT
Nigeria is Africa’s largest oil producer 
and one of the largest in the world. 
There are over 37 billion barrels of oil 
reserves and 182 tcf of gas remaining  
in Nigeria.*
 ` Why Nigeria?
RESERVES AND RESOURCES
 ` Africa’s largest oil producer – onshore, shallow offshore and 
deep offshore – and 12th largest in the world.*
 ` Remaining reserves in Nigeria of over 37 billion barrels 
of oil and 182 tcf of gas.*
 ` Over 1,000 fields discovered with the majority yet to be 
developed.
 ` The Niger Delta is geologically low risk, with world-class 
exploration potential.
COMMERCIAL OPPORTUNITIES
 ` Opportunities exist as IOCs continue to rationalise their 
portfolios within Nigeria.
 ` New licensing rounds expected in 2014.
 ` Numerous undeveloped fields exist within Nigeria creating  
an opportunity for partnership with indigenous companies.
 ` Nigeria has a vast pipeline network with third party access.  
In addition to this pipeline network there are a number of 
large export terminals which have available capacity.
LOCAL KNOWLEDGE
 ` High barriers to entry for companies without in-country 
knowledge and relationships.
 ` Eland has an experienced management team with over  
40 years of in-country experience.
 ` Chief Executive Officer and operational management team 
based in Nigeria. Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 17
Congo Brazzaville
1.6
Angola
12.7
Nigeria
37.2
Gabon
2.0
Chad
1.5
Sudan
1.5
South Sudan
3.5
NIGERIA AT A GLANCE
Nigeria is located in West Africa sharing borders 
with Niger in the north, Chad and Cameroon in the 
east and Benin in the west. Nigeria is estimated to 
be the most populated country in Africa and 
8th most populated in the world.**
The southern coast of Nigeria, dominated by the 
Niger Delta, lies on the southern Atlantic Ocean in 
the Gulf of Guinea. The Delta is an oil-rich region 
and where the majority of Nigeria’s 37 billion 
barrels of reserves are located.*
Daily production of oil in Nigeria currently exceeds 
2.4 mmbbl per day. 95% of commodities exports 
are attributed to petroleum and petroleum 
products with exports revenue from Nigeria 
totalling a value of $93 billion.**
Nigeria’s other natural resources include natural 
gas, tin, iron ore, coal and limestone.
GEOLOGY
Nigeria is geologically low risk with world-class 
exploration and production. It has extensive 3D 
seismic coverage, stacked reservoirs and deviated 
wells which offer a very high chance of success 
(typically 75-90%). The reservoir properties in 
Nigeria and the oil recovery rates are amongst the 
best in the world. Due to the abundance of oil and 
gas development there is a large established 
pipeline and export infrastructure.
* Source: BP Statistical Review of World Energy 2013
** CIA World Factbook 2013
Crude oil proved reserves
37.2bn bbl*
Total exports revenue
$93bn**
Population of Nigeria
177 million**
Crude oil production
2.4 mmbopd*
* Proved reserves 
 (billion bbls) Eland Oil & Gas PLC Annual Report and Financial Statements 2013 18
George Maxwell
Chief Financial Officer
MANAGING CHANGE
Key Strengths
 ` Retained strong and supportive shareholder base.
 ` Share price recovered above initial listing price.
 ` Revised asset valuation (CPR) increased Eland 2P Net 
(Entitlement) Present Value at 10% by 195% to $407 million.
 ` Near-term production and revenue growth potential.
Key Financial Highlights
 ` The Group loss increased during 2013 to $26.1 million from 
$14.2 million (2012).
 ` Current cash and cash equivalents of $22.8 million (April 2014) 
increased from the 2013 ending balance of $3.8 million. A 
further $6.5 million is due to be received over the next three 
months from the balance of the shareholder option exercised.
 ` Maintained positive progress towards production throughout 
2013 within available funding resources.
Review of 2013
During the year we have responded to a number of planned and 
unplanned changes to the initial budget and plan to restore 
production on OML 40, which was achieved in 2014. The initial 
funding plan and budget called for production within the first 
half of 2013, in order to maintain the drilling programme later in 
the year. The enforced changes, due to delays in 
recommencement of production, resulted in numerous 
reforecasts of the project and changes within the control 
environment in order to deliver the production plan within the 
available funding. Funds have been prudently expended to 
ensure that the progress towards first oil is maintained, despite 
the delays which were beyond the Company’s control.
The Group performance in 2013 was significantly impacted by 
the delay in securing initial production from OML 40. The delay 
in production resulted mainly from contracting and procurement 
issues throughout the year. This also forced a change in planning 
activity and a change to the original drilling programme. The 
Company, by effecting the change to the drilling programme, in 
conjunction with rescheduling of other planned expenditures, 
managed to conserve cash to focus all resources on returning 
production to OML 40.
The loss in 2013 of $26.1 million was mainly attributable to the 
increase in operating expenses during the year. This increase 
of $12.2 million to $16.5 million related largely to operating 
expenses in Nigeria. This included technical studies and 
in-country resources reviewing new opportunities. 
Administrative expenses in the year of $8.4 million have 
reduced by $0.3 million from the previous year due to 
lower consulting costs.
The Group began the year with cash and cash equivalents of 
$24.5 million and during 2013 used $19.4 million. This is mainly 
attributable to funding the operating expenses in Nigeria and 
the capital expenditure for replacement parts and repair 
enhancements in the flowstation and export pipeline, resulting 
in capital additions totalling $6.1 million in the year.
The new decommissioning study performed during 2013 by 
RPS provided the Group with the first updated 
decommissioning study post-OML 40 acquisition. This study 
has largely resulted in a reduction in the decommissioning 
provision of $6.7 million.
During 2013 the Company received a non-cash dividend of 
$6.5 million from Westport Oil Ltd, a wholly-owned Jersey 
subsidiary. Payment of this dividend gave rise to a minimal tax 
charge in 2013 of $0.3 million.
Eland upgraded and installed new accounting and business 
management software which was rolled out to the whole 
group and is being used both in the UK and Nigeria. Included 
within this system are a procurement and management 
module which has improved the efficiency of the process and 
visibility of all the transactions. This system has expandable 
modules providing both project management and contracts 
management which will be invaluable during the more 
complex drilling phase of the OML 40 development.
FINANCIAL REVIEW Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 19
In accordance with the obligations under the Standard Chartered 
Bank debt facility we rationalised our banking relationships 
across the group. This has provided greater visibility to all 
transactions and has improved the speed and efficiency of 
cross-border money movements.
A review of the functional currency of Eland Oil & Gas PLC was 
undertaken during 2013 in accordance with IAS 21. The outcome 
of this review determined that a change in functional currency 
from Sterling to US Dollars was appropriate, and subsequently 
the financial statements of Eland Oil & Gas PLC have been 
prepared on this basis.
In summary 2013 has been a year of challenges and changes as we 
developed and redeveloped the plans on OML 40 towards 
establishing production. The key success has been managing the 
revised programmes within the resources available to the Company. 
2014 Financial Outlook
2014 has already delivered the key milestone of production on 
OML 40 and this delivery is the main testament to the efforts by 
the Company in 2013. 
During the first quarter the Company secured an extension to the 
debt facility with Standard Chartered Bank. The existing facility of 
$22 million remains undrawn at this time and subject to the 
conditions precedent in note 15 of the financial statements. This 
facility has been extended through February 2015. This facility and 
extension provides the additional funding required to allow the 
commencement of the planned drilling programme in 2014. The 
Company will seek to replace this facility prior to the expiry date of 
February 2015 with a reserve-based lending facility and increase 
the debt level above the current $22 million to be in line with the 
revised CPR. The revised CPR indicates a 195% increase in 
discounted net asset value which, in management’s opinion, 
should provide the opportunity to double the debt level subject to 
market conditions. Securing this new and increased facility will 
ensure that the drilling programme for 2014/2015 can be 
completed in full.
The Group has also entered into discussions with relevant 
government departments in Nigeria about its tax status. Good 
progress has been made and the Group expects to benefit from 
a significant reduction in underlying tax rates. This fiscal 
development will support an increase in the planned investment 
and accelerated development of the 2P production profile in 
OML 40.
The Company also exercised the Shareholder options in early 
2014. This has provided it with the additional resource of 
£16 million, with a further £4 million due to be received over the 
next 3 months, that is being employed to ensure that the 
Company can capitalise on opportunities and incentives as they 
become available.
The recent events within the Nigerian E&P sector ensure that 
this remains an exciting and vibrant market sector. Eland is well 
placed for the future as part of this market.
George Maxwell
Chief Financial Officer
26 May 2014 Eland Oil & Gas PLC Annual Report and Financial Statements 2013 20
2012 McDaniel CPR
2013 NSAI CPR
2012
2013
Gross 1P Oil Reserves (mmbbl)
19.2
38.2
2012
2013
Gross 2P Oil Reserves (mmbbl)
71.8
81.8
2012
2013
Gross 3P Oil Reserves (mmbbl)
117.0
105.4
2012
2013
Gross 2C Oil Resources (mmbbl)
15.5
45.3
*2013 Budget assumed ﬁrst production in July 2013
2013 Actual
2013 Budget
Gross Average Barrels Per Day (bopd)
0.0
1,084*
2013 Actual
2013 Budget
Opex Per Barrel (US$/bbl)
0.0 71.8
11
117.0
105.4
45.3
2012 Actual
2013 Actual
2013 Budget
Revenue (US$ million)
0.0
0.0
14.2
2012 Actual
2013 Actual
2013 Budget
(24.7)
(15.0)
EBITDA* (US$ million)
2012 Actual
2013 Actual
2013 Budget
161.7
(13.3)
1.4
Cashﬂow (before Capex) (US$ million)
45.3
(12.9)
*Operating loss adjusted for depreciation.
The Company have outlined below the Key Performance Indicators which 
will be used to provide an understanding of the development and 
performance of the business.
The Company has yet to establish full production on OML 40 and therefore 
a number of the key indicators have been impacted by this delay.
RESERVES AND RESOURCES
The Company had an initial reserves and 
resources base for OML 40 in 2012. This 
position was re-evaluated through detailed 
study and seismic re-processing during 
2013. The results are shown in the graphs 
below for both reserves and resources and 
are compared to the 2012 position.
This indicator highlights the increase in the 
net reserves and resources base in the 
business which provides the majority of 
the Net Asset value within the Company.
The Company had planned to be in 
production during 2013, however 
operational issues delayed this until 
February 2014. A key indicator for the 
business is production performance year 
on year and as compared to Budget.  
In this regard the Company did not  
achieve the target.
Included within the production section is a 
cost control metric over produced volume. 
This is measured in Operating Costs per 
Barrel of Oil produced. The key target is to 
improve the efficiency of production with 
lower per unit operating costs.
The key financial metrics for the business 
include comparison for Revenue, EBITDA 
and Cash Flow (before Capex)
The tables above show the comparison to 
2012 Actual, 2013 Actual and 2013 
planned performance.
PRODUCTION
KEY PERFORMANCE INDICATORS
FINANCIAL Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 21
Health and Safety
We plan to 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.
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.
CORPORATE SOCIAL RESPONSIBILITY
 ` Just good business
We take our responsibilities to all our 
stakeholders seriously and see this as 
key to holding a licence to operate. Eland Oil & Gas PLC Annual Report and Financial Statements 2013 22
PRINCIPAL RISKS AND UNCERTAINTIES
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 for 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 groups operations and has obtained 
membership of the QCA (Quoted Companies Alliance).
Plans are in place to introduce a full programme of 
compliance and training for the UK Anti-Bribery Act 
and the US FCPA.
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 full time 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 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.
Oil Price A significant fluctuation of 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.
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.
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 QCA guidelines. Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 23
PRINCIPAL RISK DETAIL MITIGATION
Production 
Operations
The planned production operations involve risks common 
to the industry, including oil spills, pipeline disruption, oil 
storage and terminating, explosions, fires, equipment 
damage or failure, 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 are in place 
to allow oil production 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 provide 
further capital in pursuit of additional opportunities, or 
fully develop OML 40 within the planned time frame, the 
Group will have a 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 have access to sufficient cash 
resources and debt to initiate the development of OML 40. 
An extension to the existing debt facility and an expansion 
of this facility would be 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 but in a much 
extended time frame. On execution of the planned 
activities, it is anticipated that OML 40 can be fully 
developed utilising the cash flow from operations. 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 in the market.
Licensing and 
other regulatory 
requirements
The Group’s direct and/or indirect intended future 
operations will be subject to mineral leases, petroleum 
leases, licences, production sharing contracts, 
regulations and approvals of governmental authorities 
for exploration, development, construction, operation, 
production, marketing, pricing, transportation and 
storage 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 exploration, exploration and 
production, or production licences, regulations and 
approvals, or their availability to the Group or its 
associated companies may adversely affect the Groups 
assets, plans, targets or projections.
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.
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 would 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 Adverse changes in fiscal terms could 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
George Maxwell
Chief Financial Officer
26 May 2014 Eland Oil & Gas PLC Annual Report and Financial Statements 2013 24
BOARD OF DIRECTORS
Ian Leslie Blair,
Chief Executive Officer
George Walter Mitchell Maxwell,
Chief Financial Officer
Henry “Harry” George Wilson,
Non-Executive Chairman
Robert Alexander Lambert,
Non-Executive Director 
Biography 
Les has over 30 years’ 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 the UK, Spain, Libya, 
Vietnam, India, Nigeria, Kurdistan and Dubai.
In 2006 he 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, Dubai.
Prior to joining Addax, Les held Country 
Manager positions with Enterprise Oil and 
British Gas in South East Asia.
Les graduated from the University of 
Aberdeen in Finance & Economics and is a 
Fellow of the Association of Chartered 
Certified Accountants.
Term of Office
Les was appointed to the Board as Chief 
Executive Officer in September 2009.
Biography 
George has over 20 years’ 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 was Europe & Africa 
Vice President of Finance for ABB Oil & Gas. 
He held a similar position in Houston, for 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 the Robert Gordon 
University, Aberdeen with an MBA.
Term of Office
George was appointed to the Board as Chief 
Financial Officer in September 2009.
Biography 
Harry has over 35 years’ international 
experience in upstream oil and gas initially 
as an explorer with British Petroleum and 
then as the founder and Chief Executive 
Officer of several independent oil 
companies. During this period, he led 
listings for four companies and has been a 
director of public companies both in the UK 
and abroad across a number of sectors.
Harry graduated with a BSc Hons in Physics 
from Manchester University and attended 
the Insead Business School in France.
Term of Office
Harry was appointed to the Board as 
Non-Executive Chairman in May 2010.
Biography 
Bob has over 40 years’ upstream oil and gas 
experience and is currently CEO and 
President of TSX-V listed Petra Petroleum 
Inc. He recently stepped down from GB 
Petroleum Ltd, a London-based private 
international exploration company that he 
founded and managed for just over five 
years. Prior to GB Petroleum, Bob enjoyed a 
successful 25 year career with Conoco.
Bob has broad multi-disciplinary experience 
in Exploration, Production, Business 
Development and Corporate Management 
with wide international exposure in North 
Africa, West Africa, Middle East, Southeast 
Asia, Australia and USA.
Bob obtained an MBA (with Distinction) 
from the University of Aberdeen and is a 
Chartered Geologist and Fellow of the 
Geological Society of London.
Term of Office
Bob was appointed to the Board as Senior 
Independent Non-Executive Director in 
August 2012. Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 25
Gilles Jacobus Krijger
Executive Technical Director
Gilles resigned from the Board on  
11 February 2014 and will not be standing 
for re-election at the forthcoming AGM. 
Gilles remains in the Company in a senior 
technical position.
James Ede-Golightly 
Non-Executive Director
After his contributions to the Board since 
2012, James resigned from the Board of 
Directors on 11 February 2014.
Other Directors who served on the Board during the year:
Louis Emmanuel Castro,
Non-Executive Director
Russell Seth Harvey,
Non-Executive Director
Andrew Bartlett,
Non-Executive Director
Biography 
Louis has over 20 years’ 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 is Managing Director of Northland 
Capital Partners, London, previously 
being head of corporate finance at Matrix 
LLP and 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 & 
Wales with a BSc & BComm (Hons) in 
Engineering Production & Economics 
from Birmingham University.
Term of Office
Louis was appointed to the Board as 
Non-Executive Director in August 2012.
Biography 
Russell has over 30 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 start-up 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.
Term of Office
Russell was appointed to the Board as 
Independent Non-Executive Director in 
August 2012.
Biography 
Andrew has over 30 years of experience in 
the oil & gas industry and is currently Oil & 
Gas Adviser at Helios LLP (‘Helios’), the 
African focused private equity group.
An experienced investment banker, Andrew 
was both the Global Head of Oil & Gas 
Project Finance and Global Head of Oil & 
Gas M&A at Standard Chartered Bank until 
July 2011. Between 1980 and 2001 he 
worked for Royal Dutch Shell as a Petroleum 
Engineer and Development Manager where 
he gained extensive experience in 
developing and operating oil and gas  
fields. Andrew also helped to establish  
Shell Capital.
Term of Office
Andrew was appointed to the Board as  
Non-Executive Director in January 2013. Eland Oil & Gas PLC Annual Report and Financial Statements 2013 26
SENIOR MANAGEMENT
Pieter van der Groen
General Manager, Technical
Pieter has 20 years’ oilfield exploration and production experience in 
technical, operational and management roles. He started with 
Schlumberger, London as geologist, moving on to become a wireline 
engineer in Asia and West Africa. After his field work, he trained as a 
log analyst working in London and was seconded to Exxon.
He moved to Amerada Hess, London, providing petrophysical 
support, then worked abroad on two large onshore field 
rehabilitation projects, in Azerbaijan then in Algeria, in a variety of 
technical, operational and management roles. Pieter has also worked 
with Gulfsands in Syria as Deputy General Manager, and his recent 
experience consists of four years in Nigeria as General Manager of an 
independent oil company, overseeing an onshore development in the 
Niger Delta.
Pieter has a geology degree from Auckland University and a Masters 
degree in Petroleum Geology from the University of Aberdeen.
Jay Christison
General Manager, Facilities
Jay has 30 years’ 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, 
Nigeria, 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 on the capabilities of local contractors and 
vendors in Nigeria. Jay manages the design and construction of the 
oil producing facilities.
Jay has a Masters degree in Mechanical Engineering and has been a 
registered Professional Engineer in British Columbia since 1974.
Gafar Olagunju
Human Resources & Services Manager
Gafar has 39 years of diversified experience in oil and gas business 
covering production, drilling, completion and work-over, 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) in various senior 
managerial positions. He had been deployed to work in France and 
Switzerland and attended many international training conferences 
and seminars. 
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.
Chris Moar
General Manager, Group Finance
Chris has over 30 years’ experience working in senior financial 
management roles in the oil services and oil and gas industries, 
primarily in AIM listed companies and also has experience of US 
listed companies. Chris worked for Baker Oil Tools UK as Planning 
and Financial accountant before joining SeaEnergy plc (formerly 
Ramco Energy plc) where he became Finance Director and 
Company Secretary. Chris also held these roles simultaneously for 
SeaEnergy plc associate company Lansdowne Oil & Gas plc.
Chris has an MA degree in Accountancy and Economics from 
Aberdeen University and qualified as a Chartered Accountant with 
Ernst & Young in 1987.
Steven Archibald
Manager, Treasury & Corporate Finance
Steven has more than 12 years’ experience in a diverse range of roles 
and organisations. Prior to joining Eland in February 2011, Steven was 
based in Oslo as Finance Manager for Dana Petroleum Norway. Prior 
to that he fulfilled a number of Financial Analyst, Management 
Accountant and Treasury roles with several oil & gas operator and 
service companies, including BP, Baker Hughes, Schlumberger and 
Transocean, as well as several SME service companies in Aberdeen.
Steven graduated from the Robert Gordon University with a BA 
Honours degree in Business Studies. He is a Chartered Management 
Accountant and a Chartered Global Management Accountant.
Edward Cozens
Manager, Corporate Finance & Investor Relations
Edward joined Eland in 2013 and is currently Corporate Finance & 
Investor Relations Manager based in London.
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 began his career in the City. He 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. 
Bert Dijksman
Exploration Manager
Bert has over 30 years of international energy industry experience, 
most recently with PanTerra Geoconsultants BV where he was Chief 
Geologist and Principal Exploration Consultant.
Bert joined Shell International E&P in 1977 working in various 
exploration roles in Africa, Oman, Egypt, Namibia, the North Sea and 
South America, where he was directly involved in the discovery of 
the giant Camisea gas field. In 2001, Mr. Dijksman joined Maghreb 
Petroleum Exploration, Morocco where he evaluated several inland 
basins and shallow offshore tracts before moving to Staatsolie 
Maatschappij Suriname NV in 2003, again as an Exploration and 
Contract advisor and was responsible for the full exploration cycle. 
Several additional fields were discovered reversing the then declining 
production into a healthy increase of over 50%.
From 2000 to 2008 Bert advised the Namibian State Oil company 
Namcor. Bert joined PanTerra Geoconsultants BV in 2006 and since 
2010 he has been closely involved in the evaluation of Eland’s OML 
40 licence.
Bert has a MSc in Geology from the University of Utrecht and 
obtained a PhD at the Utrecht University in 1977. Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 27
Results and Dividend
The Group’s loss for the year was $26.1 million (2012: loss of $14.2 million).
The Directors do not propose a dividend (2012: $nil).
Details of significant events affecting the Company and Group since the balance sheet date are given in note 31 to the financial 
statements. A fair review of the business including future developments is included in the Strategic Report on pages 1 to 23.
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 19 of the consolidated financial statements. The Company has employee 
share option plans in place, full details of which can be found in note 28 to the financial statements.
Financial Instruments
The Group’s principal financial instruments comprise cash and cash equivalents, debt facilities and share options. Further details 
on financial instruments are given in note 29 to the financial statements.
Directors
Biographies of the present Directors of the Company are listed on pages 24 and 25.
In accordance with the Company’s Articles of Association, Robert Lambert, Louis Castro 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 31 to 33.
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.
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
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 contained within the annual report. The financial position of 
the Group, its cash flows, liquidity position and borrowing facilities are described in the Chief Financial Officer’s Review of the 
annual report. Having regard to the matters above, and after making reasonable enquiries, the Directors have a reasonable 
expectation that the Company and the Group have adequate resources to continue operations for the foreseeable future. For that 
reason, they continue to adopt the going concern basis in the preparation of the accounts.
Approved by the Board of Directors and signed on behalf of the Board.
George Maxwell
Chief Financial Officer
26 May 2014
DIRECTORS’ REPORT Eland Oil & Gas PLC Annual Report and Financial Statements 2013 28
CORPORATE GOVERNANCE STATEMENT
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 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 every two months and at such other times as the Directors deem necessary.
The Company has appointed Robert Lambert as the Company’s Senior Independent Non-Executive Director.
The Board has created a Remuneration Committee, an Audit Committee, a Technical and Reserves Committee and a Nomination 
Committee where the current composition and responsibilities of the committees are as follows:
Audit Committee
The Audit Committee consists of Louis Castro as Chairman, Robert Lambert and Harry Wilson.
It 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 auditor 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 auditor at least twice 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 auditor.
Remuneration Committee
The Remuneration Committee consists of Russell Harvey as Chairman and Harry Wilson, Andrew Bartlett and Louis Castro.
It 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 any other 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 Boards 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 Robert Lambert as Chairman and Andrew Bartlett, Louis Castro and 
Russell Harvey.
The 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 based on the recommendation provided by the Company 
or independently sourced by the committee. Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 29
Nomination Committee
The Nomination Committee consists of Harry Wilson as committee Chairman and Robert Lambert and Russell Harvey.
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.
The Board of Directors
Director
Remuneration 
Committee
Audit 
Committee
Technical 
and Reserves 
Committee
Nominations 
Committee
Ian Leslie Blair – – – –
George Walter Mitchell Maxwell – – – –
Henry George Wilson ✓ ✓ – Chair
Robert Alexander Lambert – ✓ Chair ✓
Louis Emmanuel Castro ✓ Chair ✓ –
Russell Seth Harvey Chair – ✓ ✓
Andrew Bartlett ✓ – ✓ –
* Gilles Krijger and James Ede-Golightly both resigned from the Board of Directors on 11 February 2014.
Internal Control
The Company has introduced 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. Eland Oil & Gas PLC Annual Report and Financial Statements 2013 30
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
Les Blair   George Maxwell
Chief Executive Officer  Chief Financial Officer
26 May 2014   26 May 2014
DIRECTORS’ RESPONSIBILITY STATEMENT  Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 31
The Remuneration Committee (the ‘Committee’) is comprised of Russell Harvey (Chairman), Louis Castro, Henry Wilson and Andrew 
Bartlett. 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 Remuneration 
Committee. No Director may participate in any meeting at which discussion or any decision regarding his own remuneration takes 
place. The Remuneration 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 Remuneration Committee is permitted to appoint independent advisers to assist in the determination of the remuneration.
In April 2014 Russell Harvey took over from Harry Wilson as Chairman of the Remuneration Committee. The members of the 
Remuneration Committee are as stated above.
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.
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 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 AIM 50, and AIM E&P Indices.
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 has been conducted post the year end following the commencement of 
production from OML 40.
Employee Benefits
George Maxwell and Gilles Krijger received car allowances in the period. In 2013, pension contributions totalling £24,200 were made in 
respect of the current year. In 2013 an additional contribution of £49,000 was made in relation to 2012 and prior years. 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 in Note 30 of the Financial Statements.
The Company provides the Company’s Directors and Officers with third party indemnity insurance.
REMUNERATION REPORT
For the year ended 31 December 2013 Eland Oil & Gas PLC Annual Report and Financial Statements 2013 32
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 28 to the Financial Statements.
The grant of options to Directors under the Plan in 2012 results in the following position as at 31 December 2013 (audited):
Director
New 
options 
granted in 
2013
Total number  
of options held  
at the date of  
this report
Ian Leslie Blair – 4,017,905
George Walter Mitchell Maxwell – 3,515,667
Gilles Jacobus Krijger – 190,000
Henry George Wilson – 2,511,191
Robert Alexander Lambert – –
Louis Emmanuel Castro – 130,000
Russell Seth Harvey – –
Andrew Bartlett – –
James Ede-Golightly – –
No further share option awards were made in 2013.
Performance Graph
The following graph shows the Company’s total shareholder return from 1 January 2013 to 30 April 2014, against the FTSE AIM 
ALL-SHARE Index.
REMUNERATION REPORT (CONTINUED)
For the year ended 31 December 2013
80
90
100
110
120
130
140
150
Eland Oil & Gas PLC
01/01/2013
01/12/2013
01/01/2014
01/02/2014
01/03/2014
01/04/2014
01/11/2013
01/10/2013
01/09/2013
01/08/2013
01/07/2013
01/06/2013
01/05/2013
01/04/2013
01/03/2013
01/02/2013
FTSE AIM All-share Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 33
Directors’ Remuneration
The remuneration of the Directors who held office in the year ended 31 December 2013, payable by Group companies, was as 
follows (audited):
Directors
Fees and basic 
salary 
£(000)
Pension 
£(000)
Benefits in kind 
£(000)
Total 2013 
£(000)
Total 2012
£(000)
Executive Directors
Ian Leslie Blair
1 2 3
396.1 28.2 6.9 431.2 303.7
George Walter Mitchell Maxwell
2 3
257.6 24.2 2.2 284.0 238.0
Gilles Jacobus Krijger
 4
255.2 – – 255.2 123.8
Non-Executive Directors
Henry George Wilson
2
267.0 – 4.8 271.8 116.3
Robert Alexander Lambert 51.0 – – 51.0 16.5
Louis Emmanuel Castro 36.0 – – 36.0 11.5
Russell Seth Harvey 51.0 – – 51.0 16.5
Andrew Bartlett 46.5 – – 46.5 –
James Ede-Golightly
 4
46.7 – – 46.7 –
Total 1,407.1 52.4 13.9 1,473.4 826.3
1. Ian Leslie Blair received basic salary in US dollars and fees in sterling.
2. In addition to the above amounts, payments were made to the following Directors in 2012 which relate to amounts accrued from prior years: Ian Leslie Blair 
£56.7k, George Walter Mitchell Maxwell £33.4k, Henry George Wilson £4.2k.
3. In addition to the above amounts, pension contributions totalling $69,117 and £40,608 were made by the Company on behalf of Ian Leslie Blair and 
George Maxwell respectively in respect of prior years.
4. Gilles Krijger and James Ede-Golightly resigned from the Board of Directors on 11 February 2014.
Non-Executive Directors
All Non-Executive Directors, including the Chairman, 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.
Harry Wilson
Chairman
Remuneration Committee
26 May 2014 Eland Oil & Gas PLC Annual Report and Financial Statements 2013 34
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 2013 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 31. 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 2013 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.
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.
Graham Hollis ACA (Senior statutory auditor)
for and on behalf of Deloitte LLP
Chartered Accountants and Statutory Auditor
Aberdeen, United Kingdom
26 May 2014 Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 35
Note
2013
$000’s
2012
Restated
(Note 2)
$000’s
Administrative expenses (8,431) (8,683)
Other operating expenses (16,478) (4,262)
Operating loss (24,909) (12,945)
Investment revenue 7 – 3
Finance costs 8 (918) (1,247)
(918) (1,244)
Loss before tax 4 (25,827) (14,189)
Tax 9 (315) –
Loss after tax and for the year from continuing operations (26,142) (14,189)
Profit/(loss) attributable to:
Owners of the Company 1,923 (5,349)
Non-controlling interests 24 (28,065) (8,840)
4 (26,142) (14,189)
Earnings/(loss) per share Note
2013
$
2012
$
From continuing operations:
Basic 10 0.01 (0.12)
Fully diluted 10 0.01 (0.12)
All activities relate to continuing operations.
The notes on pages 43 to 60 form part of these financial statements.
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2013  Eland Oil & Gas PLC Annual Report and Financial Statements 2013 36
Note
2013
$000’s
2012
$000’s
Loss for the year (26,142) (14,189)
Items that may be reclassified subsequently to profit and loss:
Exchange differences on translation of financial statements to presentation currency – 1,221
Total comprehensive loss for the year (26,142) (12,968)
Profit/(loss) attributable to:
Owners of the Company 1,923 (4,128)
Non-controlling interests 24 (28,065) (8,840)
(26,142) (12,968)
The notes on pages 43 to 60 form part of these financial statements.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2013  Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 37
Note
2013
$000’s
2012
$000’s
Non-current assets
Property, plant and equipment 11 175,119 174,914
175,119 174,914
Current assets
Trade and other receivables 13 4,194 2,080
Cash and cash equivalents 26 3,847 24,500
8,041 26,580
Total assets 183,160 201,494
Current liabilities
Trade and other payables 14 (20,398) (3,289)
Net current (liabilities) / assets (12,357) 23,291
Non-current liabilities
Decommissioning provision 18 (11,978) (17,735)
Total liabilities (32,376) (21,024)
Net assets 150,784 180,470
Shareholders’ equity
Share capital 19 214,768 214,768
Equity reserve 20 8,008 8,008
Other reserve 21 (15,542) (10,542)
Retained losses 22 (11,717) (15,096)
Translation reserve 23 1,429 1,429
Equity attributable to the owners of the Company 196,946 198,567
Non-controlling interests 24 (46,162) (18,097)
Total equity 150,784 180,470
The notes on pages 43 to 60 form part of these financial statements.
These financial statements were approved by the Board of Directors on 26 May 2014.
Harry Wilson   George Maxwell
Chairman   Chief Financial Officer
CONSOLIDATED BALANCE SHEET
As at 31 December 2013  Eland Oil & Gas PLC Annual Report and Financial Statements 2013 38
Note
2013
$000’s
2012
$000’s
Non-current assets
Investments in group undertakings 12 167,227 154,097
Property, plant and equipment 11 267 69
167,494 154,166
Current assets
Trade and other receivables 13 43,645 32,722
Cash and cash equivalents 26 3,442 24,399
47,087 57,121
Total assets 214,581 211,287
Current liabilities
Trade and other payables 14 (7,652) (1,613)
Net current assets 39,435 55,508
Net assets 206,929 209,674
Shareholders’ equity
Share capital 19 214,768 214,768
Equity reserve 20 8,008 8,008
Other reserve 21 (15,542) (10,542)
Retained losses 22 (1,376) (3,631)
Translation reserve 23 1,071 1,071
Equity attributable to the owners of the Company 206,929 209,674
The notes on pages 43 to 60 form part of these financial statements.
The financial statements of Eland Oil & Gas PLC, registered number SC364753, were approved by the Board of Directors  
on 26 May 2014.
Harry Wilson   George Maxwell
Chairman   Chief Financial Officer
COMPANY BALANCE SHEET
As at 31 December 2013  Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 39
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 2012 4,285 7,999 (185) 208 (10,258) 2,049 (9,257) (7,208)
Loss for the year – – – – (5,349) (5,349) (8,840) (14,189)
Exchange differences on translation – – - 1,221 – 1,221 – 1,221
Cost of loan notes issues – 9 – – – 9 – 9
Issue of share capital 210,483 – - – – 210,483 – 210,483
Cost of share issues – – (10,357) – – (10,357) – (10,357)
Share-based payments – – – – 511 511 – 511
Balance at 31 December 2012 214,768 8,008 (10,542) 1,429 (15,096) 198,567 (18,097) 180,470
Comprehensive profit/(loss) for the year – – – – 1,923 1,923 (28,065) (26,142)
Share-based payments – – – – 1,456 1,456 – 1,456
Forward purchase arrangement over the 
shares of a subsidiary – – (5,000) – – (5,000) – (5,000)
Balance at 31 December 2013 214,768 8,008 (15,542) 1,429 (11,717) 196,946 (46,162) 150,784
The notes on pages 43 to 60 form part of these financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year ended 31 December 2013 Eland Oil & Gas PLC Annual Report and Financial Statements 2013 40
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 2012 4,285 7,999 (185) (270) 672 12,501
Loss for the year – – – – (4,814) (4,814)
Exchange differences on translation – – – 1,341 – 1,341
Cost of loan note issues – 9 – – – 9
Costs of shares issues 210,483 – (10,357) – – 200,126
Share-based payments – – – – 511 511
Balance at 31 December 2012 214,768 8,008 (10,542) 1,071 (3,631) 209,674
Profit for the year – – – – 799 799
Share-based payments – – – – 1,456 1,456
Forward purchase arrangement over the shares of a subsidiary – – (5,000) – – (5,000)
Balance at 31 December 2013 214,768 8,008 (15,542) 1,071 (1,376) 206,929
The notes on pages 43 to 60 form part of these financial statements.
COMPANY STATEMENT OF CHANGES IN EQUITY
Year ended 31 December 2013 Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 41
Note
2013
$000’s
2012
Restated
(Note 2)
$000’s
Net cash used in operating activities 25 (13,334) (19,570)
Investing activities
Purchases of property, plant and equipment (6,085) (139,994)
Net cash used in investing activities (6,085) (139,994)
Financing activities
Net proceeds on issue of loan notes – 57
Net proceeds on issue of shares – 181,210
Net cash from financing activities – 181,267
Net (decrease)/increase in cash and cash equivalents (19,419) 21,703
Cash and cash equivalents at the beginning of the year 24,500 1,391
Effect of foreign exchange rate changes (1,234) 1,406
Cash and cash equivalents at the end of the year 26 3,847 24,500
Details of material non-cash transactions arising in 2012 are provided in notes 16 and 17. There were no material non-cash 
transactions during 2013.
The notes on pages 43 to 60 form part of these financial statements.
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 December 2013 Eland Oil & Gas PLC Annual Report and Financial Statements 2013 42
Note
2013
$000’s
2012
Restated
(Note 2)
$000’s
Net cash used in operating activities 25 (13,282) (5,734)
Investing activities
Purchases of property, plant and equipment (306) (40)
Investment in Group undertakings (6,147) (154,000)
Net cash used in investing activities (6,453) (154,040)
Financing activities
Net proceeds on issue of loan notes – 57
Net proceeds on issue of shares – 181,210
Net cash from financing activities – 181,267
Net (decrease)/increase in cash and cash equivalents (19,735) 21,493
Cash and cash equivalents at the beginning of the year 24,399 1,384
Effect of foreign exchange rate changes (1,222) 1,522
Cash and cash equivalents at the end of the year 26 3,442 24,399
The notes on pages 43 to 60 form part of these financial statements.
COMPANY CASH FLOW STATEMENT
Year ended 31 December 2013 Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 43
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2013
1. General information
The principal accounting policies are summarised below. They have all been applied consistently throughout the year and 
preceding year.
Eland Oil & Gas PLC is a company incorporated in the United Kingdom, under the Companies Act 2006. The address of the 
registered office is given on page 62. The nature of the Company’s operations and its principal activities are set out on pages 1 to 
17 of this Annual Report.
The Company and the Group’s financial statements cover the year to 31 December 2013.
Restatement of Consolidated Income Statement for year ended 31 December 2012
The Board have decided that the categorisation of expenditure previously reported in the Consolidated Income Statement for the 
year ended 31 December 2012, did not properly reflect the nature of the costs incurred by the business. Accordingly costs totalling 
$4,262,000, which were previously reported as Administrative expenses, have been transferred to Other operating expenses with 
the effect of reducing Administrative expenses from $12,945,000 to $8,683,000. This recategorisation has been applied again in 
2013 and will be applied on a consistent basis going forward.
Restatement of Cash Flow Statements for year ended 31 December 2012
In response to questions arising from a review of the Company’s Annual Report and accounts for the year ended 31 December 
2012 by the Financial Reporting Council’s Conduct Committee, the Directors decided that it was necessary to restate the 
comparative Company and Consolidated Cash Flow Statements to correct the following items:
Company Cash Flow Statement
Within Financing activities, Net proceeds on issue of shares has been restated from $200,781,000 to $181,210,000 by excluding a 
non-cash transaction relating to the conversion of convertible loan notes and preference shares to equity. Repayment of 
borrowings, relating to the same non-cash item, has been removed from Financing activities (previously an outflow of 
$19,571,000). Net cash from financing activities remains unchanged at $181,267,000.
Consolidated Cash Flow Statement
Cash used in Operating activities has been restated from $1,835,000 to $19,570,000 by removing a non-cash adjustment relating 
to an increase in provisions of $17,735,000.
Within Investing activities, Purchases of property, plant and equipment has been adjusted by a corresponding amount of 
$17,735,000 restated from an outflow of $157,729,000 to an outflow of $139,994,000.
Within Financing activities, Net proceeds on issue of shares has been restated from $200,781,000 to $181,210,000 by excluding a 
non-cash transaction relating to the conversion of convertible loan notes and preference shares to equity. Repayment of 
borrowings, relating to the same non-cash item, has been removed from Financing activities (previously an outflow of 
$19,571,000). Net cash from financing activities remains unchanged at $181,267,000.
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 reports a profit for the year ended 31 December 2013 of $0.8 million (2012: loss of $4.8 million).
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the 
Company made up to 31 December each year. Control is achieved where the Company has the power to govern the financial and 
operating policies of an investee entity so as to obtain benefits from its activities. 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. Eland Oil & Gas PLC Annual Report and Financial Statements 2013 44
2. Significant accounting policies continued
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.
 ` Amendments to IFRS 7 on Financial instruments asset and liability offsetting (effective 1 January 2013) - the Group does not 
have any offsetting arrangements in place.
 ` IFRS 13, Fair Value Measurements – the application of IFRS 13 has not had any material impact on the amounts recognised in 
the financial statements.
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 9 Financial Instruments
 ` 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), amendments Investments in Associates and Joint Ventures.
 ` IAS 36 (amendments) Recoverable Amount Disclosures for Non-Financial Assets
 ` IAS 39 (amendments) Novation of Derivatives and Continuation of Hedge Accounting
 ` 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, except for extra disclosures in respect of IFRS 12.
Beyond the information above, it is not practicable to provide a reasonable estimate of the effect of these standards until a 
detailed review has been completed.
No new standards or interpretations were early adopted by the Group or Company during the year.
Going concern
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 contained within the annual report. The financial position of 
the Group, its cash flows, liquidity position and borrowing facilities are described in the Chief Financial Officer’s Review of the 
annual report. Having regard to the matters above, and after making reasonable enquiries, the Directors have a reasonable 
expectation that the Company and the Group have adequate resources to continue operations for the foreseeable future. For that 
reason, they continue to adopt the going concern basis in the preparation of the accounts.
Oil and gas assets
Development and production assets are accumulated generally on a field-by-field basis and represent the 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 purchases 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 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.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
Year ended 31 December 2013 Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 45
2. Significant accounting policies continued
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.
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 
a 50% statistical probability that the actual quantity of recoverable reserves will be more than the amount estimated as proven 
and probable reserves and a 50% statistical probability that it will be less.
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. 
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 on an appropriate basis.
Proceeds on disposal are applied to the carrying amount of the specific intangible asset or development and production assets 
disposed of and any surplus is recorded as a gain or loss on disposal in the income statement.
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 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.
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.
Leasing
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. Eland Oil & Gas PLC Annual Report and Financial Statements 2013 46
2. Significant accounting policies continued
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.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
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, Naira (Nigerian currency) or Euros. 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.
For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations are 
translated at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average 
exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at 
the date of transactions are used. Exchange differences arising, if any, are recognised in other comprehensive income and 
accumulated in equity.
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.
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.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
Year ended 31 December 2013 Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 47
2. Significant accounting policies continued
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 29 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.
Compound instruments
The component parts of compound instruments (including redeemable convertible preference shares and redeemable convertible 
loan notes) issued by the Company are classified separately as financial liabilities and equity in accordance with the substance of 
the contractual arrangement. At the date of issue, the fair value of the liability component is estimated using the prevailing market 
interest rate for a similar non-convertible instrument. This amount is recorded as a liability on an amortised cost basis using the 
effective interest method until extinguished upon conversion or at the instrument’s maturity date. The equity component is 
determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is 
recognised and included in equity, net of income tax effects, and is not subsequently remeasured.
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 28. 
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.
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 judgements 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 financial statements.
Decommissioning provision
The Group has significant obligations to decommission and remove oil & gas facilities from its existing licence at the end of the 
production period. 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. Eland Oil & Gas PLC Annual Report and Financial Statements 2013 48
3. Critical accounting judgements and estimates continued
The costs of decommissioning are reviewed annually. A review of all decommissioning cost estimates was undertaken by an 
independent specialist in 2013 which has been assessed and updated internally for the purposes of the 2013 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 are 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 18.
Share-based payments
In valuing the share-based payments realised in the Group’s accounts, the Company has used the Black-Scholes calculation 
model, which makes various assumptions on factors outside the Group’s control, such as share price volatility and risk-free interest 
rates. Details of the options and assumptions used in deriving the share-based payments are disclosed in note 28.
Carrying value of oil and gas assets
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 cashflows within complex value in use models. Key assumptions and estimates in the cashflow 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. Management do not believe the delay in first oil production was an indicator of impairment as there has been no 
reduction in the reserves to be recovered, and accordingly a full impairment review was not performed. 
Commercial Reserves
Proven 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. The Group estimates its reserves using standard recognised evaluation techniques. The estimate is reviewed annually. 
Proven 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. 
4. Loss for the year
Group
The loss before taxation for the year has been arrived at after charging/(crediting):
2013
$000’s
2012
$000’s
Depreciation on property, plant and equipment (note 11) 186 60
Net foreign exchange losses 1,405 2,323
Wages, salaries and other employment costs* 6,642 3,280
Costs of admission to AIM – 3,200
8,233 8,863
* Includes costs of $839,000 (2012 : $816,000) relating to non-executive directors’ fees and other temporary employment costs not included in note 6 below.
In addition to the above, costs of $9.6 million in 2012 relating to the issue of new equity upon listing were taken to equity (note 21).
5. Auditor’s remuneration
The analysis of auditor’s remuneration is as follows:
2013
$000’s
2012
Restated
(see below)
$000’s
Fee payable to the Company’s auditor for the audit of the Company’s annual accounts 165 152
The audit of the Company’s subsidiaries pursuant to legislation 93 73
Total audit fees 258 225*
* Includes fees of $127,000 relating to 2012 which were billed in 2013.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
Year ended 31 December 2013 Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 49
5. Auditor’s remuneration continued
2013
$000’s
2012
Restated
(see below)
$000’s
Fees payable to the Company’s auditor and their associates for other services to the Group
– Tax compliance services 29 12
– Tax advisory services 61 –
– Other assurance services 59 27*
– Corporate finance services – 470**
Total non-audit fees 149 509
* $27,000 of other assurance services previously included in audit fees.
** 2012 previously included fees of $187,000 for corporate finance services paid to other advisers.
The tax services relate to UK corporation tax advice income tax advice and share incentive plan advice.
The other assurance services relate to review of the Interim financial statements and advice on converting the local Nigerian 
statutory accounts to IFRS.
6. Staff costs
The average monthly number of employees (including Executive Directors) was:
2013
No.
2012
No.
Management 3 3
Technical 2 2
Administration 23 12
28 17
Their aggregate remuneration comprised:
2013
$000’s
2012
$000’s
Wages and salaries 3,279 1,824
Social security costs 574 142
Share-based payments 1,457 498
Pension costs 493 –
5,803 2,464
A breakdown of Directors’ remuneration is included in the Remuneration Report. 
7. Investment revenue
2013
$000’s
2012
$000’s
Interest revenue:
Bank deposits – 3
8. Finance costs
2013
$000’s
2012
$000’s
Interest on 5% convertible redeemable loan notes classified as financial liabilities – 749
Interest on cumulative convertible redeemable preference shares classified as financial liabilities – 198
Unwinding of discount on decommissioning provision (note 18) 906 293
Other interest expense 12 7
918 1,247
9. Tax
2013
$000’s
2012
$000’s
Current tax charge/(credit) 315 –
Deferred tax charge/(credit) – –
Total tax charge for the year 315 – Eland Oil & Gas PLC Annual Report and Financial Statements 2013 50
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
Year ended 31 December 2013
9. Tax continued
The standard rate of tax for the year is 65.75% (2012: 65.75%), being Nigerian Petroleum Profits Tax. The total tax charge can be 
reconciled to the loss per the income statement as follows:
2013
$000’s
2012
$000’s
Loss before tax on continuing operations (25,827) (14,189)
Loss on activities multiplied by the relevant rate of tax of 65.75 % (2012: 65.75%) (16,981) (9,329)
Impact of tax rate differences (21,206) (3,231)
Temporary differences on which no deferred tax is recognised 40 5
Non-deductible expenses for tax purposes 4,542 493
Brought-forward losses utilised in the year (125) –
Losses not utilised in the period on which no deferred tax is recognised 34,045 12,062
Total taxation 315 –
The Group has taxable losses of $76,824,000 (2012: $28,124,000) for which no deferred tax asset has been recognised. 
Management expect that Group company Elcrest Exploration & Production Nigeria Limited, which accounts for the majority of 
these losses, will be granted favourable tax status during 2014. If granted, that company will then benefit from a five year tax 
holiday but as a result the existing tax losses will no longer be available to utilise against future profits, hence management 
believe it is not appropriate to recognise an asset in respect of these tax losses at 31 December 2013.
10. Earnings/(loss) per share
Earnings/(loss) per share (‘EPS’) is the amount of post-tax profit/(loss) attributable to each share.
Diluted EPS takes into account the dilutive effect of all equity options and share option plans being exercised.
From continuing operations
The calculation of the basic and diluted earnings/(loss) per share is based on the following data:
Earnings/(loss)
2013
$000’s
2012
$000’s
Earnings/(loss) for the purpose of the basic earnings/(loss) per share being net profit/(loss) attributable to 
owners of the Company 1,923 (5,349)
Earnings/(loss) for the purposes of basic and diluted earnings/(loss) per share 1,923 (5,349)
Number of shares
2013
 000’s 
2012
 000’s 
Weighted average number of Ordinary Shares for the purposes of basic earnings/(loss) per share 135,263 46,301
Effect of dilutive potential Ordinary Shares:
Equity options 3,040 –
Weighted average number of Ordinary Shares used in the calculation of diluted earnings/(loss)  
per share 138,303 46,301
From continuing operations
Year ended
2013 
$
 Year ended
2012
$
Basic 0.01 (0.12)
Diluted 0.01 (0.12)
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 has one class of potential ordinary shares; share options. Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 51
11. 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 2012 138 82 17,097 17,317
Additions 39 12 157,678 157,729
Exchange differences (3) 1 2 –
At 31 December 2012 174 95 174,777 175,046
Additions 513 – 6,541 7,054
Effect of changes to decommissioning estimates 18 – – (6,663) (6,663)
At 31 December 2013 687 95 174,655 175,437
Accumulated depreciation
At 1 January 2012 (42) (30) – (72)
Charge for the year (35) (25) – (60)
Exchange differences (1) 1 – –
At 31 December 2012 (78) (54) – (132)
Charge for the year (156) (30) – (186)
At 31 December 2013 (234) (84) – (318)
Carrying amount
At 31 December 2013 453 11 174,655 175,119
At 31 December 2012 96 41 174,777 174,914
The Group’s oil & gas development assets at 31 December 2013 relate to the Group’s interest in OML 40 in Nigeria. 
The Company – Fixtures and equipment
Total
$000’s
Cost
At 1 January 2012 67
Additions 39
Exchange differences 3
At 31 December 2012 109
Additions 306
At 31 December 2013 415
Accumulated depreciation
At 1 January 2012 (21)
Charge for the year (19)
At 31 December 2012 (40)
Charge for the year (108)
At 31 December 2013 (148)
Carrying amount
At 31 December 2013 267
At 31 December 2012 69
12. Investments in Group undertakings
Company 
$000’s
Cost and net book value at 1 January 2012 93
Additions 154,000
Exchange differences 4
At 1 January 2013 154,097
Additions 13,130
At 31 December 2013 167,227
Movement in the year relates to investment in Westport Oil Limited. Eland Oil & Gas PLC Annual Report and Financial Statements 2013 52
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
Year ended 31 December 2013
12. Investments in Group undertakings continued
In accordance with the Group’s accounting policy on page 43, 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.
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 Oil and Gas Exploration and Production Nigeria 100% 100%
Westport Oil Limited Financing Jersey 100% 100%
13. Trade and other receivables
Group 
2013 
$000’s
Company 
2013
$000’s
Group
2012
 $000’s
Company 
2012
$000’s
Amounts due from Group undertakings (note 30) – 40,289 – 31,044
Other debtors 2,039 1,986 883 821
Prepayments 2,155 1,370 1,197 857
4,194 43,645 2,080 32,722
Carrying value of trade and other receivables approximates to their fair value.
14. Trade and other payables
Group 
2013 
$000’s
Company 
2013 
$000’s
Group
2012
 $000’s
Company 
2012 
$000’s
Amounts due to Group undertakings (note 30) – 356 – 359
Trade creditors 1,659 418 313 258
Accruals and deferred income 13,424 1,563 2,976 996
Corporation tax 315 315 – –
Other creditors 5,000 5,000 – –
20,398 7,652 3,289 1,613
Trade 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 Naira (Nigerian currency).
Other creditors relates to a forward purchase arrangement, see note 21.
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.
15. Borrowings
2013
$000’s
2012
$000’s
Secured bank loan facilities with maturity date 24 February 2015:
Amount used – –
Amount unused 22,000 22,000
22,000 22,000
The US$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 is available to the Company to 
allow Elcrest (the group company which holds a 45% interest in OML 40) to meet its general working capital requirements.
Interest is payable on amounts outstanding from time to time at a rate equivalent to USD LIBOR plus a margin of 9%. It is condition 
precedent to the availability of the facility that First Oil has been achieved. First Oil means the production of crude oil at an average 
rate of 2,000 bopd for a cumulative 30-day non-consecutive period in a 90-day period following the restart of production, being the 
date on which 2,000 bopd is first measured to have been achieved, in addition to receipt of 50,000 bbls into the Forcados terminal 
and a settlement of the first crude oil sale. These conditions precedent have not been met at the date of this report. Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 53
16. Convertible preference shares
The convertible redeemable preference shares were issued by the Company on 26 August 2010 at a par value of £1 each and 
were converted to Ordinary Shares of the Company on 3 September 2012 at par. A dividend at a coupon rate of 8% was payable 
annually up until the date of settlement or conversion.
At issue, the net proceeds received in respect of convertible redeemable preference shares were split between the financial 
liability element and an equity component, representing the fair value of the embedded option to convert the financial liability into 
equity of the Company. The movement in the liability component in the preceding year was as follows: 
$000’s
Liability component as at 1 January 2012 2,671 
Interest charged  105 
Accrued coupon interest (148)
Exchange differences 122 
Conversion to Ordinary Shares (2,750)
Liability component as at 31 December 2012 and 31 December 2013 – 
The interest expensed was calculated by applying an annualised effective interest rate of 15.38% to the liability component until 
March 2012, at which point it was fully unwound. The liability component was measured at amortised cost.
17. Convertible redeemable loan notes
The First Loan Notes and Second Loan Notes were issued on 12 January 2011 and 10 March 2011 respectively, at an issue price of 
£50,000 per note. The Third Loan Notes were issued on 20 December 2011, at an issue price of £10,000 per note. 
The First Loan Notes and the Third Loan Notes were converted into Ordinary Shares of the Company on 3 September 2012. Round 
One, Two and Three Loan Note interest of £2,081,982 converted into Ordinary Shares at par on 3 September 2012. Further loan 
note interest with an aggregate value of £391,232 converted into Ordinary Shares at par on 17 September 2012. The Second Loan 
Notes were fully redeemed in October 2011. 
At issue, the net proceeds received in respect of the convertible loan notes was split between the financial liability element and 
equity component, representing the fair value of the embedded option to convert the financial liability into equity of the Company. 
The movement in the liability component during the year was as follows:
First Loan 
Notes
$000’s
Second 
Loan Notes
$000’s
Third Loan 
Notes
$000’s
Total
$000’s
Liability component as at 31 December 2011 14,050 – 977 15,027
Proceeds of issue of convertible loan notes – – 65 65
Equity component – – (9) (9)
– – 56 56
Interest charged 725 – 209 934
Accrued coupon interest – – (11) (11)
Issue costs (liability component) – – (8) (8)
Exchange differences 667 – 61 728
Conversion of convertible loan notes (15,442) – (1,284) (16,726)
Liability component as at 31 December 2012 and 31 December 2013 – – – –
The interest expensed for the year is calculated by applying an effective annualised interest rate of 16.82% in respect of the First 
Loan Notes and 20.38% in respect of the Third Loan Notes, to the liability components of each respective Loan Note round for the 
period up until conversion on 3 September 2012. The liability components are measured at amortised cost.
18. Decommissioning provision
2013
$000’s
2012
$’000’s
At 1 January 17,735 –
Additions – 17,442
Unwinding of discount 906 293
Effect of changes to decommissioning estimates (note 11) (6,663) –
At 31 December 11,978 17,735 Eland Oil & Gas PLC Annual Report and Financial Statements 2013 54
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
Year ended 31 December 2013
18. Decommissioning provision continued
The provision for decommissioning is in respect of OML 40. 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. 
A corresponding amount equivalent to the provision is recognised as part of the cost of the related property, plant and equipment 
(within additions). 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.
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 believe 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. 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.
19. Share capital
Group and Company
2013
$000’s
2012
$000’s
Authorised:
175,000,000 ordinary shares of £1 each 284,463 284,463
Allotted, issued and paid:
135,263,214 shares of £1.00 each 214,768 214,768
On 3 September 2012, 118,000,000 new Ordinary Shares of £1.00 each were issued in respect of the Company’s AIM Placing. 
All First Round Loan Notes totalling £9,500,000 and Third Round Loan Notes totalling £790,000 converted at par into £1.00 
Ordinary Shares of the Company upon admission to AIM. 1,750,000 Preference Shares also converted at par into £1.00 ordinary 
shares upon admission to AIM. 
Round One, Two and Three Loan Note interest of £2,081,982 converted to Ordinary Shares of the Company at par upon admission 
to AIM. A further proportion of the loan note interest, with an aggregate value of £391,232 converted into Ordinary Shares at par 
on 17 September 2012. 
A further resolution was passed in January 2012 to authorise the allotment of up to 175,000,000 ordinary shares of £1.00 each in 
the capital of the Company.
There were no movements in the share capital during 2013.
On 27 February 2014, the Company partially exercised options for 3,000,000 Ordinary Shares and 3,000,000 Non-Voting Right 
Shares in the Company under the Solstice Option Agreement and the Helios Option Agreement (‘the Agreements’), raising 
£6 million in total, at 100 pence per share. 
Pursuant to the Helios Option Agreement, Helios Natural Resources Limited (‘Helios’) subscribed for 3,000,000 Non-Voting Right 
Ordinary Shares (‘Non-Voting Shares’) at a subscription price of 100 pence per share on 6 March 2014. The Non-Voting Shares rank 
pari passu in all respects with the existing Ordinary Shares save that they do not have the right to vote at any general meeting or 
annual general meeting of the Company. The Non-Voting Shares are convertible in to Ordinary Shares, on a one-for-one basis, 
subject to the restrictions contained in the articles of association. Under the articles of association Helios may not convert its holding 
of Non-Voting Shares into Ordinary Shares if doing so were to increase its holding in Ordinary Shares, when taken together with any 
of its affiliates or persons acting in concert, to equal or exceeding 30% of the current voting share capital in the Company. Following 
allotment of the outstanding share options from Solstice, some of the Helios Non-Voting Shares will convert to Ordinary Shares up 
to a maximum Helios holding of 29.6%.
Pursuant to the Solstice Option Agreement, Solstice International Investments Inc. (‘Solstice’) subscribed for 3,000,000 Ordinary 
Shares in the Company. (‘Ordinary Shares’) at a subscription price of 100 pence per share on 12 March 2014.  Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 55
19. Share capital continued
On 26 March 2014, the Company exercised the remaining balance of the Options under the Agreements, raising up to a further 
£14 million in total at 100 pence per share.
Pursuant to the Solstice Option Agreement, Solstice subscribed for 7,000,000 Ordinary Shares in the Company at a subscription 
price of 100 pence per share. 3,000,000 of these shares were allotted on 30 April 2014.
The new Ordinary Shares rank pari passu in all respects with the existing Ordinary Shares.
Pursuant to the Helios Option Agreement, Helios subscribed for a further 7,000,000 Non-Voting Shares at a subscription price of 
100 pence per share, on 4 April 2014.
Following the admission of the New Ordinary Shares and the issue of Non-Voting Shares in March and April 2014, the Company’s 
issued share capital consists of 141,263,214 Ordinary Shares and 10,000,000 Non-Voting Shares. 
The outstanding 4,000,000 shares subscribed for by Solstice are due to be allotted upon payment by Solstice no later than the 
following dates:
Date Number of shares
31 May 2014 2,000,000
30 June 2014 1,000,000
21 August 2014 1,000,000
20. Equity reserve
Group and Company
Equity 
reserve
$000’s
Balance at 1 January 2012 7,999
Recognition of equity component of 1% convertible redeemable loan notes 9
Balance at 1 January 2013 and 31 December 2013 8,008
This reserve represents the equity component of convertible debt instruments (see notes 16 and 17).
21. Other reserve
Group and Company
Other 
reserve
$000’s
Balance at 1 January 2012 (185)
Commissions payable on conversion of loan notes to Ordinary Shares (975)
Costs of issue of 1% convertible redeemable loan notes (13)
Commission payable on AIM Placing (9,584)
Exchange differences 215
Balance as at 1 January 2013 (10,542)
Forward purchase arrangement over the shares of a subsidiary (5,000)
Balance as at 31 December 2013 (15,542)
This reserve relates primarily to costs incurred on funds raised on AIM in 2012.
The forward purchase arrangement relates 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.
22. Retained (losses)/profits
Group
$000’s
Company
$000’s
Balance at 1 January 2012 (10,258) 672
Loss for the year (14,189) (4,814)
Credit to equity-settled share-based payments 511 511
Less: Non-controlling interest 8,840 –
Balance at 1 January 2013 (15,096) (3,631)
(Loss)/profit for the year (26,142) 799
Credit to equity-settled share-based payments 1,456 1,456
Less: Non-controlling interest 28,065 –
Balance as at 31 December 2013 (11,717) (1,376) Eland Oil & Gas PLC Annual Report and Financial Statements 2013 56
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
Year ended 31 December 2013
23. Translation reserve
In the prior year 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.
Group
$000’s
Company
$000’s
Balance at 1 January 2012 208 (270)
Effect of translation on net assets of foreign operations 1,221 1,341
Balance at 1 January 2013 and 31 December 2013 1,429 1,071
24. Non-controlling interests
Group $000’s
Balance at 1 January 2012 (9,257) 
Share of loss for the year (8,840)
Balance at 1 January 2013 (18,097)
Share of loss for the year (28,065)
Balance as at 31 December 2013 (46,162)
25. Notes to the cash flow statement
Group
2013
$000’s
2012
Restated
(Note 2)
$000’s
Loss for the year (26,142) (14,189)
Adjustments for:
Depreciation of property, plant and equipment (note 11) 186 60
Finance costs (note 8) 918 1,248
Share-based payments (note 28) 1,456 511
Unrealised foreign exchange losses on operating activities 1,234 –
3,794 1,819
Operating cash flows before movements in working capital (22,348) (12,370)
Increase/(decrease) in trade and other operating creditors 11,128 (5,753)
Increase in trade and other operating receivables (2,114) (1,447)
9,014 (7,199)
Net cash used in operating activities (13,334) (19,570)
Company
2013
$000’s
2012
$000’s
Profit/(loss) for the year 799 (4,814)
Adjustments for:
Depreciation of property, plant and equipment (note 11) 108 19
Net finance (income)/expense (9,849) 955
Share-based payments (note 28) 1,456 511
Unrealised foreign exchange losses on operating activities 1,222 –
(7,063) 1,485
Operating cash flows before movements in working capital (6,264) (3,329)
Increase/(decrease) in trade and other operating creditors 1,028 (6,890)
(Increase)/decrease in trade and other operating receivables (8,046) 4,485
(7,018) (2,405)
Net cash used in operating activities (13,282) (5,734) Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 57
26. Cash and cash equivalents
Group
2013
$000’s
Company
2013
$000’s
Group
2012
$000’s
Company
2012
$000’s
Cash and bank balances 3,847 3,442 24,500 24,399
27. Operating lease arrangements
Group
2013
$000’s
Company
2013
$000’s
Group
2012
$000’s
Company
2012
$000’s
Minimum lease payments under operating leases recognised as an expense in the year 653 116 288 32
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:
2013
$000’s
2012
$000’s
Within one year 732 99
In the second to fifth years inclusive 792 –
After five years 962 –
2,486 99
Operating lease payments represent rentals payable by the Group for certain of its office properties. 
28. Share-based payments
Equity settled share option scheme
The Company has a share option scheme for all Directors and key personnel of the Group. The options were granted on  
3 September 2012. 2,669,763 Founder options are exercisable at £1.00 each. 8,210,000 share options are exercisable at £1.00 each and 
368,500 share options are exercisable at £1.13 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 have 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 grant. If the options remain unexercised after the day preceding 
the tenth anniversary of the date of the grant the options expire. Details of the share options outstanding during the year are as follows.
2013 2012
Number of 
share options
Weighted 
Average 
Exercise price 
(£)
Number of  
share options
Weighted 
Average 
Exercise price 
(£)
Outstanding at the start of the year 11,248,263 1.00 – –
Granted during the year – – 11,248,263 1.00
Outstanding at the end of the year 11,248,263 1.00 11,248,263 1.00
Exercisable at the end of year – – –  –
The options outstanding at 31 December 2013 had a weighted average exercise price of £1.00, and a weighted average remaining 
contractual life of 8 years and 9 months. The aggregate of the estimated fair values of the options granted in 2012 was 
£2.557 million. The inputs into the Black-Scholes model during 2012 were as follows:
Year-end closing share price 116.25p
Weighted-average exercise price 100p
Expected volatility 28%
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 behavioural considerations.
The Group recognised total expenses of $1,456,000 (2012: $511,000) related to equity settled share-based payment transactions 
in 2013. Eland Oil & Gas PLC Annual Report and Financial Statements 2013 58
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
Year ended 31 December 2013
29. 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 2012.
The capital structure of the Group includes no debt as at 31 December 2013. Equity attributable to equity holders of the parent 
comprises issued capital, reserves and retained earnings as disclosed in notes 19 to 23.
The Group is not subject to any externally imposed capital requirements.
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
Categories of financial instruments
At 31 December 2013, the Group and Company held the following financial assets:
Group
2013
$000’s
Company
2013
$000’s
Group
2012
$000’s
Company
2012
$000’s
Trade and other receivables (note 13) 4,194 43,645 2,080 32,722
Cash and bank balances (note 26) 3,847 3,442 24,500 24,399
8,041 47,087 26,580 57,121
Of the cash balances of $3.8 million (2012: $24.5 million), $1.1 million (2012: $0.3 million) was denominated in US Dollars and 
$2.7 million (2012: $24.2 million) was denominated in Sterling. Naira denominated balances were immaterial.
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 no credit risk associated with trade, other debtors and prepayments.
At 31 December 2013, the Group and Company held the following financial liabilities at amortised cost:
Group
2013
$000’s
Company
2013
$000’s
Group
2012
$000’s
Company
2012
$000’s
Trade creditors (note 14) 1,659 418 313 258
Amounts due to Group undertakings (note 14) – 356 – 359
Accruals and deferred income (note 14) 13,424 1,563 2,976 996
Other creditors 5,000 5,000 – –
20,083 7,337 3,289 1,613
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.
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 all the Group companies 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 now US Dollar denominated.
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 Naira (Nigerian currency). 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 Naira. The current exposure to 
foreign currency risk is minimal due to the low value of expenses transacted in both 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 $0.5 million lower mainly as a result of differences of translation of Sterling denominated expenditure at higher rates.
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 $0.6 million higher mainly as a result of translating Sterling denominated expenditure at lower rates. Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 59
29. Financial instruments continued
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 $0.2 million lower mainly as a result of translating Naira denominated expenditure at higher rates.
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 $0.2 million higher as a result of translating Naira denominated expenditure at lower rates.
Liquidity risk management
Liquidity risk is the risk that the Group or Company will encounter difficulty in meeting their financial obligations as they fall due. 
Ultimate responsibility for liquidity risk management rests with the board of Directors. In order to mitigate this risk the 
management regularly reviews the upcoming liabilities to ensure these can be met as and when they fall due. 
The Group manages liquidity risk by maintaining adequate 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 reduced 
liquidity risk are set out in Note 15.
Financial facilities
Loan facility
The Group has a loan facility with Standard Chartered Bank. Details are given in note 15.
Equity options
The Company negotiated equity options with two key investors in August 2012. These equity options were with Solstice 
International Investments Inc. and Helios Natural Resources Limited, both substantial shareholders in the Company. The equity 
options were each for £10 million and were available to the Company from September 2013 to September 2014 in exchange for 
shares priced at par. These investors also had the option to subscribe for these shares, priced at par from September 2012 through 
to September 2014. These equity options provide additional working capital for the Company. The options were partially exercised 
by the Company in February 2014 and the remaining balance exercised in March 2014. Details are given in note 19 Share Capital
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.
Maturity of financial assets and liabilities
All of the Group’s and Company’s financial liabilities and their financial assets as at 31 December 2013 are either payable or 
receivable within one year. On this basis no maturity analysis has been disclosed.
30. Related party transactions
Group and Company
Loans to related parties
2013
$000’s
2012
$000’s
Loans from Eland Oil & Gas PLC to Eland Oil & Gas (Nigeria) Limited 5,233 3,030
Loans from Westport Oil Limited to Elcrest Exploration & Production Nigeria Limited 160,633 154,000
165,866 157,030
Loans to Eland Oil & Gas (Nigeria) Limited are short term and carry interest of 5% per annum.
Loans from Westport Oil Limited to Elcrest Exploration & Production Nigeria Limited are long term and carry interest of 18% per annum.
Other transactions between the Company and Group undertakings
Eland Oil & Gas 
(Nigeria) Ltd
$000’s
Elcrest 
$000’s
Westport
$000’s
Total 
$000’s
Balance at 1 January 2012 1,497 17,100 – 18,597
Transactions during the year ended 31 December 2012:
Management fees – 3,008 – 3,008
Costs recharged 1,478 3,266 – 4,744
Exchange differences 106 1,559 – 1,665
Balance at 31 December 2012 3,081 24,933 – 28,014
Transactions during the year ended 31 December 2013:
Management fees – 3,011 – 3,011
Costs recharged 2,311 70 51 2,432
Exchange differences 83 1,164 – 1,247
Balance at 31 December 2013 5,475 29,178 51 34,704 Eland Oil & Gas PLC Annual Report and Financial Statements 2013 60
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
Year ended 31 December 2013
30. Related party transactions continued
During the year, Eland Oil & Gas (Nigeria) Limited paid costs of $3,743 (2012: $109,991) on behalf of the Company. A balance of 
$328,000 (2012: $324,257) remained outstanding as at 31 December 2013.
Trading transactions
Group companies entered into the following transactions with related parties who are not members of the Group:
Purchase of 
services
2013
$000’s
Purchase of 
services
2012
$000’s
Feltz Consultancy Ltd – 145
Park Securities Ltd – 57
– 202
Feltz Consultancy Ltd was a related party of the Group because Gilles Jacobus Krijger held directorships in both Feltz 
Consultancy Ltd and Eland Oil & Gas PLC.
Park Securities Ltd is a related party of the Group because Henry George Wilson holds directorships in both Park Securities Ltd  
and Eland Oil & Gas PLC. 
The service agreements with both of the above related parties were terminated prior to the Company’s admission to AIM on  
3 September 2012.
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.
2013
$000’s
2012
$000’s
Wages and salaries 2,196 1,277
Pension 85 –
Social security costs 203 74
Share-based payments 1,374 464
3,858 1,815
In addition to the above amounts pension contributions totalling $69,117 and £40,608 were made by the Company on behalf of Ian 
Leslie Blair and George Maxwell respectively in respect of prior years.
Further details can be found in the Directors’ Remuneration Report on pages 31 to 33.
31. Post-balance sheet events
(a) Commencement of production on OML40
Following successful testing and commissioning of the field facilities, oil production from the Opuama field (“Opuama”) started on 
4 February 2014. Production recommenced through the successful re-commissioning of existing infrastructure and the re-opening 
of two existing wells. The crude oil produced will be delivered to the Shell Forcados export terminal via the re-commissioned 
flowstation and export pipeline.
(b) Extension of Standard Chartered Loan Facility
The US$22 million loan facility was extended in February 2014. Details are given in note 15 Borrowings.
(c) Exercise of Equity Options
On 27 February 2014 and 26 March 2014, the Company exercised its options under the Solstice Option Agreement and the Helios 
Option Agreement, raising £20.0 million in total, at 100 pence per share. Details are given in Note 19 Share Capital. Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 61
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. 
FORWARD-LOOKING STATEMENTS Eland Oil & Gas PLC Annual Report and Financial Statements 2013 62
United Kingdom
Registered Office
34 Albyn Place
Aberdeen
AB10 1FW
Head Office
Seabrokers House
Prospect Road
Westhill
Aberdeen
Scotland
AB32 6FE
Tel: +44 1224 737300
London
Stanhope House
47 Park Lane
London
W1K 1PR
Tel: +44 207 016 3180
Nigeria
Abuja
10 Osun Close
Maitama
Abuja
Tel: +234 9 623 3008
Email: info@elandoilandgas.com
www.elandoilandgas.com
SHAREHOLDER INFORMATION Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 63
Directors
Ian Leslie Blair, Chief Executive Officer
George Walter Mitchell Maxwell, Chief Financial Officer
Henry George Wilson, Non-Executive Chairman
Robert Alexander Lambert, Non-Executive Director & Senior Independent Director
Louis Emmanuel Castro, Non-Executive Director
Russell Seth Harvey, Non-Executive Director
Andrew Bartlett, 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
Stephenson Harwood
1 Finsbury Circus
London, EC2M 7SH
United Kingdom
Streamsowers & Köhn
16D, Akin Olugbade Street
Victoria Island
Lagos
Nigeria
Independent Auditor
Deloitte LLP
Union Plaza
1 Union Wynd
Aberdeen, AB10 1SL
United Kingdom
DIRECTORS AND ADVISERS Eland Oil & Gas PLC Annual Report and Financial Statements 2013 64
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
Amocon Amalgamated Oil Company Nigeria Limited
API American Petroleum Institute
bbl/bbls Barrel/barrels
Bcf Billion standard cubic feet
blpd Barrels per day
bopd Barrels of oil per day
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 The 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
EXP Exploration and Production
FCPA Foreign Corrupt Practices Act
FDP Field Development Programme
GOR Gas Oil Ratio
Group The Company and all its subsidiaries
IAS International Accounting Standard
IOC International Oil Company
IFRS International Financial Reporting Standard(s)
km Kilometres
km
2
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
McDaniel McDaniel & Associates Consultants Ltd
NAOC Nigerian Agip Oil Company Limited
NPDC Nigerian Petroleum Development Company Ltd
NSAI Netherland, Sewell & Associates Inc. Strategic Report Governance Financial Statements Other Information
Eland Oil & Gas PLC Annual Report and Financial Statements 2013 65
OECD Organisation for Economic Co-operation and Development
OML 40 Oil Mining Lease 40
OML 49 Oil Mining Lease 49
OPL 452 Oil Prospecting License 452
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
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
tcf Trillion standard cubic feet
Total Total E&P Nigeria Limited Eland Oil & Gas PLC Annual Report and Financial Statements 2013 66
NOTES  Eland Oil & Gas PLC Annual Report and Financial Statements 2013
Eland Oil & Gas PLC
Registered office
34 Albyn Place
Aberdeen
AB10 1FW
Scotland
www.elandoilandgas.com