Oando Energy Resources Inc. announces third quarter results

Oando Energy Resources Inc. announces third quarter results

Oando Energy Resources Inc. (“OER” or the “Company”) (TSX:OER), a company focused on oil exploration and production in Nigeria, announced its financial and operating results for the quarter ended September 30, 2013.

Operational Highlights
– 3,946 bbl/day in average production for the quarter ended September 30, 2013. This represented a 2% decrease from the same period last year;

– $37.5 million in revenue from the sale of crude for the quarter ended September 30, 2013. This represented a 3% decrease from the same period last year; and

-Average gross sales price realized per barrel of oil produced was $108 for the quarter ended September 30, 2013.
Financial Highlights

– Entered into an amendment agreement with ConocoPhillips (NYSE: COP) to extend the long stop date for completion of the proposed acquisition of COP’s Nigerian upstream oil and gas business (the “COP Acquisition”);

– Terminated the Brass LNG Purchase Agreement with COP, which was previously announced in connection with the COP Acquisition;

-Received signed commitment letters for up to US$815 million of term bank financing towards the COP Acquisition;

-$2.8 million in net income for the nine months ended September 30, 2013. This represented a decrease of 89% from same period last year and was a result of interest paid on the deposit for the COP acquisition;

– $31.7 million in net income for the nine months ended September 30, 2013, excluding the interest paid on the deposit for the COP acquisition. This represented an increase of 24% from same period last year;

– $21.3 million in net cash outflow from operating activities for the quarter ended September 30, 2013, compared to $34.9 million in net cash inflow from operating activities for the quarter ended September 30, 2012;

– $5.3 million in cash and cash equivalents for the quarter ended September 30, 2013. This represented an increase of 13% from the period ended December 31, 2012; and

– $604.9 million in borrowings as at September 30, 2013. This represented an increase of 20% from the period ended December 31, 2012. The increase was primarily a result of additional loans used to finance the COP Acquisition.

“During our third quarter we moved forward with the financing activities related to our acquisition of ConocoPhillips’ Nigerian assets,” said OER CEO, Pade Durotoye. “We were successful in receiving signed commitment letters for up to $815 million in credit facilities. We continue to focus on closing the transaction and plan to update the market in the weeks to come.”

Source: oandoenergyresources.com

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