Seplat Petroleum has agreed to acquire Eland Oil & Gas for GBP 382 million in cash in October 2019. Each Eland shareholder will receive 166 pence in cash for each share. This represents a premium of 28.5% of Eland's closing price on October 14th. The Eland directors have endorsed the transaction.
Seplat's oil production will increase to 38,000 bbl/day based on Eland and Seplat's 2019 production guidance, and 2P oil reserves will increase to 268 million bbl. Seplat plans to operate the companies independently following the close of the transaction and review the organizational structure 12 months following the acquisition. Eland's Nigerian staff will be relocated to Seplat's existing offices, and Seplat will evaluate what to do with Eland's Aberdeen, UK office later. The transaction closed in December 2019.