Oando Energy Resources announce third quarter results
Oando Energy Resources Inc. (“OER” or the “Company”) (TSX: OER), a company focused on oil and gas exploration and production in Nigeria, announced financial and operating results for the three and nine month periods ended September 30, 2014. All monetary figures reported herein are U.S dollars unless otherwise stated.
Recent Operational Highlights
On July 30, 2014, completed the acquisition of COP (the “Acquisition Assets”) for a total cash consideration of $1.5 billion. The Corporation is now positioned as one of the leading E&P players in the Nigerian Oil & Gas sector, with Proved plus Probable Reserves of 230.6 MMboe, Best Estimate Contingent Resources of 536.8 MMboe, Unrisked Best Prospective Resources of 2,051.8 MMboe as at December, 2013 and total production of approximately 51,400 boe/day at the end of the third quarter, 2014.
Achieved total production of 4.1 million boe in the nine months and 3.2 million boe in the three months periods ended September 30, 2014 compared with 1.1 million boe and 363,000 boe in the comparative periods ended September 2013, respectively. The increase was primarily due to the Company’s newly acquired working interest in OML 60 – 63 which contributed 2.9 million boe of production over the 62-day period from July 30 to September 30, 2014.
During the Quarter, the Company and its partners completed the construction of the 45,000bbls/d Umugini pipeline project and commenced final testing in readiness for commercial injection into the pipeline.
“At the end of July we completed the transformational acquisition of the Nigerian Upstream business of ConocoPhillips Company (“COP”), that substantially grew our production, reserves, resources and cashflow, which will allow us exploit a broader suite of assets and new growth opportunities both onshore and offshore Nigeria,” said Pade Durotoye, CEO of Oando Energy Resources Inc. “In the third quarter we saw an immediate and significant impact on revenue with only a partial two months of production contribution from the assets acquired in the ConocoPhillips transaction. We also took steps to strengthen our balance sheet with the conversion to equity of more than $315 million in principal, interest and fees payable under the $1.2 billion facility agreement.”