Continental Focus, International Reach

OML 40 Renewal Approved with Hefty Bonus

Tuesday, November 13, 2018

Eland Oil & Gas, through its JV subsidiary Elcrest Exploration and Production Nigeria, announced that the Petroleum Ministry had consented to Elcrest’s renewal of its equity participation in OML 40 for a further 20 years. This took effect on October 22.

The consent is conditional on an Elcrest payment of a Renewal bonus of $6.3 million within 90 days and a commitment from the OML 40 JV to gas monetization and additional salesof 25 Mmcf/d with the gas sales agreement to be signed within five years. The company is currently preparing the title deed for OML 40 to conclude the renewal process. All other conditions precedent to the consent have been met.