- Eland Oil & Gas said Monday its joint-venture subsidiary, Elcrest Exploration and Production Nigeria, was granted a renewal of its oil mining lease for a further 20 years.

Under the terms of the renewal, Elcrest was required to pay a renewal bonus of US$6.3m within 90 days and a commit to gas monetisation and an additional sale 25 million SCF/Day from the oil mining licence 40 joint venture. Gas sales agreement would have to be signed within 5 years, the company said.

Eland said it was currently preparing the title deed for the oil mining licence 40 to complete the renewal process.

'We are delighted to confirm the formal renewal of our OML 40 licence. This continues the OML 40 Joint Venture's excellent opportunity to continue the significant investment into OML 40's work programme; continuing to increase production, proven reserves, cash flow local employment and government take,' said George Maxwell, CEO of Eland.

'We look forward to a continuing positive partnership with Nigerian Petroleum Development Company and pushing together to make OML 40 one of the most significant license blocks in Nigeria.'

At 8:37am: [LON:ELA] Eland Oil Gas PLC share price was +3.25p at 104.75p

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