OANDO ENERGY RESOURCES ANNOUNCES YEAR END RESULTS & RESERVES UPDATE
Oando Energy Resources Inc. (“OER” or the “Company”) (TSX:OER), a company focused on oil exploration and production in Nigeria, today announced financial and operating results for the year ended December 31, 2012. The audited financial statements, notes and MD&A pertaining to the period are available on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com and by visiting www.oandoenergyresources.com. All monetary figures reported herein are U.S. dollars unless otherwise stated.
On December 20, 2012 the Company entered into an agreement with ConocoPhillips to acquire ConocoPhillips’ Nigerian businesses for a total cash consideration of approximately US$1.79 billion. The closing of the acquisition is subject to customary conditions including the receipt (or waiver) of all approvals or consents from any governmental authority; and the waiver or nonexercise of rights of first refusal, if any, with respect to the shares to be acquired by OER and the assets underlying such shares;
On March 27, 2013 the Company announced that it had entered into binding documentation to acquire a 40% working interest in the Qua Ibo Marginal Field within OML 13, located onshore Nigeria, adding 1.04 Mmboe of \Proved plus Probable (2P) Reserves and 2.37 Mmboe of Best Estimate (2C) \Resources (net to OER). The acquisition is subject to approval by the TSX. For further details see the Company’s press release dated March 27, 2013;
– 4,051 boepd in average net production for the year ended December 31, 2012. This represented an 18% decrease from the previous year;
– $133.7 million in revenue from the sale of crude for the year ended December 31, 2012. This represented a 15% decrease from the previous year and was attributable to lower production in 2012 compared to 2011. This was a result of the natural decline in the reservoirs of the producing fields; and shut in of wells in OML 56 (Ebendo) field as was earlier announced;
Average Gross sales price realized per barrel of oil produced was $110.21 for the year ended December 31, 2012.
-15.22 million boe of Proved plus Probable (2P) Reserves for the year ended December 31, 2012.
– 27.00 million boe of Best Estimate (2C) Contingent Resources for the year ended December 31,2012.
– $56.9 million in cash flow from operating activities for the year ended December 31, 2012. This represented an increase of 12% from the previous year;
– $15.6 million in net income for the year ended December 31, 2012. This represented an increase of 699% from the previous year;
– $70.9 million in capital expenditures for the year ended December 31, 2012. This represented a 15% increase from the previous year;
– $19.9 million in cash and cash equivalents for the year ended December 31, 2012. This represented a decrease of 45% from the previous year; and
– $480 million in long-term debt for the year ended December 31, 2012. This represented an increase of 439% from the previous year. The increase was primarily a result of a US$345 convertible loan from Oando PLC and US$90 million of bridge loans from a syndicate of Nigerian banks. These funds were used to finance a cash deposit required by the ConocoPhillips sale and purchase agreement.
– On July 24, 2012, the Company completed an reverse take-over of Exile Resources Inc. and successfully listed Oando Energy Resources on the Toronto Stock Exchange.
“Oando Energy Resources has undergone a significant transformation during 2012, as we achieved the status of a publically traded company on the Toronto Stock Exchange during the third quarter and later closed the year by entering into an agreement with ConocoPhillips to purchase in excess of approximately 43,000 boepd of production as well as an exploration portfolio,” said OER CEO, Pade Durotoye. “We believe that we now possess both a solid funding and operational platform with which our Nigerian focused management team can reliably build a leading indigenous independent oil & gas company that remains poised to grow its production volumes, reserves and resource base.”
Source: Oando Energy Resources
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