Eland Oil & Gas announced Friday a $16 million loss in its full-year results for 2014, which compared favorably to a loss of $26 million in 2013.
Eland posted revenue of $11.7 million for 2014 (2013: $0) and finished the year with a cash balance of $15 million. The company sold a total of 115,722 barrels of crude oil last year and the firm's production rate reached a gross figure of 3,500 barrels of oil per day. This has since reduced to 3,000 bopd. Eland plans to construct two new wells, Opuama 8 and 9, in Nigeria’s OML 40 license in Q3 2015.
Eland Oil & Gas Chairman Harry Wilson commented in a company statement:
"I am pleased to present Eland's financial results for 2014 after what has been a volatile year for the sector but one in which we have made significant headway. Following a near halving of the oil price our industry is facing major challenges, but I remain confident that we have the assets and a management team that can deliver value to our shareholders."
Following Eland's full year results, oil sector analysts at London-based Westhouse Securities were optimistic about the company’s future.
"After a slow start and some frustrating delays, Eland finished the year well and is making good progress towards profitability in 2015. The funding position looks secure and Eland is focused on delivering an end 2015 production equal to four times current production... Eland has also made good progress this year and assuming control of operations should put them in a better position to deliver in 2015," they said.
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