Seplat is offering 166p per share to acquire the company.
Eland, which produced some 9,948 barrels of oil per day (bopd) in the first half of 2019, has recommended the proposal which is pitched at a 28.5% premium to Monday’s closing price of 129.2p.
Eland’s directors have recommended the transaction, and key shareholders representing some 60.17% have also backed the deal by giving irrevocable undertakings to accept the offer.
The envisaged timetable sees the transaction becoming effective in late 2019.
Eland chief executive George Maxwell commented: “This recommended offer from Seplat represents the culmination of a very successful journey by Eland, the management team and all of its stakeholders.
"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 market.”
Maxwell added that, amid a significant cyclical downturn, Eland had outperformed most of its peers.
“This transaction represents a record share price for Eland and crystallises Eland's stated goal to maximise shareholder value,” he said.
Austin Avuru, Seplat chief executive, meanwhile, described Eland and its assets as “an excellent fit”.
“The acquisition reinforces Seplat's status as one of Nigeria's leading indigenous, independent E&Ps and will create a Nigerian E&P champion with the footprint and technical capabilities to further grow and consolidate in Nigeria," Avuru added.
Eland's interim results released last month revealed some US$106mln of revenue, up from US$67.4mln in the prior year, and highlighted the continued ramp-up of production in Nigeria as the expectation-beating Gbetiokun field start-up added to its Opuama field operations.
The company has guided for average production of 12,000 bopd to 13,500 bopd for 2019, with an exit rate of 17,000 to 19,000 bopd anticipated.