Oando Energy Resources Announces Operational Update
CALGARY, Alberta, March 27, 2013 /PRNewswire/ --
Oando Energy Resources Inc. ("OER" or the "Company") (TSX: OER), a company focused on oil exploration and production in Nigeria, today announced an update on its operational activities relating to its Abo (OML 125), Ebendo (OML 56) and Akepo (OML 90) assets.
OML 125/134 (Abo Field, 15% non-operated interest)
Production from the Abo asset remains at an average of 20,467 bopd (gross) with 3,070 bopd net to OER.
OML 56 (Ebendo/Obodeti Field, 42.75% non-operated interest)
Production from the Ebendo field averaged 3,600 bopd (1,540 bopd net to OER) between January 1 and February 13, 2013. On February 13, 2013, production from the Ebendo field was shut in as a result of required repairs and maintenance on the 10 inch Kwale-Akri oil delivery pipeline that is operated by Nigerian Agip Oil Company Limited ("NAOC"). The pipeline connects OER's Ebendo field (OML 56) to the Brass export terminal. Unofficial dialogue has continuously been maintained between OER and NAOC with regards to the pipeline repair progress and re-opening through the months of February and March 2013.
On March 21, 2013, NAOC officially communicated Force Majeure to OER with regards the 10" Kwale-Akri oil delivery line as a result of a pipeline leakage that had forced the Operator to significantly reduce transportation of crude oil in the pipeline in order to carry out repairs, thus hindering crude oil liftings at the Brass terminal. NAOC is working towards returning the pipeline to normal operations in the shortest possible time and will keep OER informed of its repairs progress. OER will advise the market once full integrity of the pipeline is communicated by NAOC and when production from the Ebendo field (OML 56) is expected to resume.
Operationally, the drilling campaign that commenced last year and was targeted at two producer wells (EB-4 and EB-5) continues to progress. As announced on October 22, 2012, the EB-4 well was successfully drilled, completed and brought on production at 1,800 bopd (770 bopd net to OER) for its short string, while long string production of 2,339 bopd (1,000 bopd net to OER) remains shut in due to the aforementioned Kwale-Akri pipeline.
The EB-5 well, which was spud on October 12, 2012, was intended to target the medium sands encountered during the EB-4 drilling program. The results of a drill stem test (DST) have indicated a daily production rate of 1,548 bopd (net to OER) on choke 28/64" and 828 bopd (net to OER) on choke 24/64" from the XVIIIc and XVIIId sands, respectively. The EB-5 well is currently being completed as a dual string producer with drilling operations expected to conclude by the second quarter of 2013.
OER plans to initiate its next Ebendo drilling campaign in the second quarter of 2013 with the EB-6 (firm) and EB-7 (optional) wells, which are intended to appraise the intermediate sands encountered during the drilling of the EB-4 well. A KCA Deutag rig, T-26, has been mobilized to the location to commence drilling on these wells.
Additionally, good progress continues to be made on the alternative pipeline that is being planned to accommodate increased production expected from the Ebendo field. Line pipes have been delivered to the location and the stringing and laying activities are expected to commence imminently.
OML 90 (Akepo Field, 40% non- operated interest)
The development objective of the Akepo field is to re-enter the well and evacuate the hydrocarbons via the wellhead jacket and 16 km pipeline to NAOC's Beniboye Flowstation for processing and export. The well was re-entered in 2010, and completed as a dual string producer on the D6 and D1 sands. The EPC contractor for the production facilities was awarded in 2011, and the wellhead jacket construction is being finalized.
About Oando Energy Resources Inc. (OER)
OER currently has a broad suite of producing, development and exploration properties in the Gulf of Guinea (predominantly in Nigeria) with current production of approximately 3,070 barrels of oil per day from the Abo Field in OML 125. OER has been specifically structured to take advantage of current opportunities for indigenous companies in Nigeria, which currently has the largest population in Africa, and one of the largest oil and gas resources in Africa.
Forward Looking Statements:
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements.
Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that such statements and information will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to: risks related to international operations, the actual results of current exploration and drilling activities, changes in project parameters as plans continue to be refined and the future price of crude oil. Accordingly, readers should not place undue reliance on the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive.
There is no certainty that any portion of the resources referred to herein will be discovered and, if discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
Additional information on these and other factors that could affect the Company's financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (http://www.sedar.com) for the Company. The forward-looking statements and information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE: Oando Energy Resources Inc.
For further information:
Pade Durotoye, CEO
Oando Energy Resources Inc.
Head Investor Relations
Oando Energy Resources Inc.
SOURCE Oando Energy Resources Inc.