Eland Oil & Gas PLC Extension of Share Buyback Programme (3723T)
March 20 2019 - 2:10AM
UK Regulatory
TIDMELA
RNS Number : 3723T
Eland Oil & Gas PLC
20 March 2019
20 March 2019
Eland Oil & Gas Plc ("Eland" or the "Company")
Extension of Share Buyback Programme
The board of directors of Eland Oil & Gas PLC (AIM:ELA), an
oil & gas production and development company operating in West
Africa with an initial focus on Nigeria, is pleased to announce
following publication of its results this morning that it has
decided to increase the budget of the ongoing share buyback
programme (the "Programme") by a further GBP3.0 million to a
maximum of GBP6.0 million (the "Maximum Amount"). Further to the
RNS dated 19 November 2018, the Company had launched the programme
to purchase ordinary shares up to the value of GBP3.0 million.
Since commencing the Programme, Eland has purchased 2,357,811
shares at an average price of approx. 118 pence per share and the
total cost to date of the shares purchased is GBP2.77 million. Any
ordinary shares repurchased have and will be held as treasury
shares in accordance with the provisions of the Companies Act
2006.
The Board continues to believe that the current share price
undervalues the Group's assets, the performance of the business to
date and its future prospects. The Group's robust balance sheet
provides the opportunity to enhance shareholder return through both
the continued development and growth of Eland's resource base, as
well as the Company's increased capital allocation policy.
The Company has entered into an agreement with its broker Stifel
Nicolaus Europe Limited ("Stifel") to carry out purchases of its
ordinary shares under the Programme on its behalf. Further to the
RNS on 20 February 2019, and following release of the Company's'
full year results today, the Company is no longer in its close
period, as such, on market purchases pursuant to the Programme will
now be made at the Company's discretion.
The Programme will be executed in accordance with the Company's
general authorities to make on market purchases which was approved
by shareholders at the Company's AGM on 15 May 2018.
The maximum price paid per ordinary share shall be no more than
5 per cent above the average of the middle market quotation of the
Company's shares for the five business days prior to the day the
purchase is made.
The Company intends to operate within the safe harbour
provisions set out in the Market Abuse Regulation 596/2014 and
Chapter 12 of the Listing Rules. Share repurchases will be
undertaken until the earlier of the Maximum Amount being
repurchased and the 2019 AGM of the Company.
The Company will make further announcements in due course
following the completion of any share repurchases.
George Maxwell, CEO of Eland, commented:
"We are happy to extend our successful share buyback programme
by a further GBP3million, increasing it to a maximum of
GBP6million. This increase in limit reflects the Company
achievements in 2018 and our confidence in further progress in
2019."
For further information:
Eland Oil & Gas PLC (+44 (0)1224 737300)
www.elandoilandgas.com
George Maxwell, CEO
Ronald Bain, CFO
Finlay Thomson, IR
Peel Hunt LLP, Nominated Adviser & Joint Broker (+44 (0)20
7418 8900)
Richard Crichton / David McKeown
Stifel Nicolaus Europe Limited, Joint Broker (+44 (0)20 7710
7600)
Callum Stewart / Nicholas Rhodes / Ashton Clanfield
Camarco (+44 (0) 203 757 4980)
Billy Clegg / Georgia Edmonds / Tom Huddart
Notes to editors:
Eland Oil & Gas is an AIM-listed independent oil and gas
company focused on production and development in West Africa,
particularly the highly prolific Niger Delta region of Nigeria.
Through its joint venture company Elcrest, Eland's core asset is
a 45% interest in OML 40 which is in the Northwest Niger Delta
approximately 75 km northwest of Warri and has an area of 498
km(2).
In addition, the Company has a 40% interest in the Ubima Field,
onshore Niger Delta, in the northern part of Rivers State.
The OML 40 licence holds gross 2P reserves of 82.2 million
barrels, gross 2C contingent resources of 50.7 million barrels and
a best estimate of 252.1 million barrels of gross un-risked
prospective resources*
The Ubima field holds gross 2P reserves of 9.3 million barrels
of oil and gross 2C resource estimates of 4.2 million barrels*
Net production figures relate to Elcrest Exploration and
Production Nigeria Ltd ("Elcrest"), Eland's joint venture company.
Production rates, when oil is exported via Forcados, are as
measured at the Opuama PD meter, are subject to reconciliation and
will differ from sales volumes.
*Netherland, Sewell & Associates Inc CPR report 31 December
2018*
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No. 596/2014, and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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