Eland Oil and Gas, a West Africa-focused energy firm, has concluded arrangement to float its shares on London's junior stock market with a market value of 135 million pounds ($214 million) after completing the purchase of a stake in a Nigerian oil block.
Eland Oil Chief Executive Les Blair said that his company, in partnership with Starcrest, a Nigerian oil firm bought a 45 percent stake in block OML 40 owned jointly by Shell, Total and Eni for $154 million. The Nigerian National Petroleum Corporation (NNPC), owns the other 55 percent of the block and its subsidiary. The Nigerian Petroleum Development Company (NPDC) will take over the operating rights from Shell.
Blair said the block had 71.5 million barrels of proven oil reserves and it planned to be producing 2,500 barrels per day within six months.
Eland will list on London's AIM market at 100 pence per share raising 118 million pounds ($187 million.