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Eland acquired by Nigeria oil firm Seplat in £382m deal

George Maxwell: ‘culmination of a journey’

Eland Oil & Gas, the Aberdeen-based oil explorer focused on West Africa, is being acquired by Nigeria’s Seplat Petroleum for £382 million in cash.

Seplat is offering 166p per share which represents a 28.5% premium to Monday’s closing price of 129.2p.

The board of Eland, which produced 9,948 barrels of oil per day (bopd) in the first half of 2019, has recommended the proposal. Key shareholders representing 60.17% have already backed the deal.

Eland shareholders on the register at the close of business on 18 October will be entitled to receive and retain the interim dividend of 1p per Eland Share to be paid on 31 October.

Seplat is an independent oil and natural gas producer in the Niger Delta area of Nigeria, and a supplier of processed natural gas to the domestic market, fully listed on both the Nigerian Stock Exchange and the London Stock Exchange since April 2014.

The envisaged timetable sees the transaction becoming effective in late 2019.

Eland chief executive George Maxwell described the offer as “the culmination of a very successful journey by Eland, the management team and all of its stakeholders.”

He added: “Since founding Eland, we have, jointly with our partners in Elcrest, acquired our interests in OML 40, a non-producing asset, achieved an all-time record production on this asset and become a significant independent producer in Nigeria’s E&P landscape and one of the biggest oil producers on London’s AIM.

“This transaction represents a record share price for Eland and crystallises Eland’s stated goal to maximise shareholder value.”

The Eland directors were advised by Evercore.

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