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SOURCE Oando Energy Resources Inc.
CALGARY, May 16, 2014 /PRNewswire/ --
Oando Energy Resources Inc. ("OER" or the "Company") (TSX:OER), a company focused on oil and gas exploration and production in Nigeria, today announced financial and operating results for the quarter ended March 31, 2014. The unaudited financial statements, notes and management's discussion and analysis pertaining to the period are available on the System for Electronic Document Analysis and Retrieval ("SEDAR") at http://www.sedar.com and by visiting http://www.oandoenergyresources.com. All monetary figures reported herein are U.S. dollars unless otherwise stated.
"Our first quarter was highlighted by positive operational results that saw us increase our year on year oil production by 22%," said OER CEO, Pade Durotoye. "This increase in quarterly production from the Ebendo Field was as a result of a higher production uptime experienced due to reduced shut-in's on the Agip trunkline evacuation route".
Selected Quarterly Results
For the three months ended (US$ '000, except production and per March 31 December 31 September 30 June 30 share data) 2014 2013 2013 2013 Production (bbls) 407,802 406,029 363,032 353,145 Total Revenue 32,163 23,976 37,461 36,072 Net Income for the Year (39,881) (41,008) 11,645 (1,167) Earnings Per Share (0.14) (0.32) 0.12 (0.01) Diluted Earnings Per Share (0.14) (0.32) 0.12 (0.01) Capital Expenditures 42,550 45,573 29,684 36,353 Total Assets 1,689,937 1,299,422 1,223,808 1,193,585 Total Non-Current Liabilities 274,812 275,195 206,150 207,981
OML 125 (Abo Field)
Budgeted capital expenditures for OML 125 were set at $37.5 million for 2014. In the three months ended March 31, 2014, OER incurred $26.0 million on Abo 8 re-entering and completions and Abo 12 drilling activities. Production from Abo-8 has not commenced as the required flow line is a long lead item, delivery of which is expected to be in the third quarter of 2014; the budgeted expenditure for the flow line is $5.1 million. Abo-12 well has been temporarily plugged after lower completion work was performed with tie-in planned for 2015.
OML 56 (Ebendo Field)
Budgeted capital expenditures for OML 56 were set at $22.7 million for 2014. In the three months ended March 31, 2014, OER incurred $3.5 million on the drilling and ongoing completion works on Ebendo Well 7. This well, in addition to Ebendo 5 and Ebendo 6 (both completed wells), have been suspended pending the completion of the Umuginni pipeline.
OML 13 (Qua Ibo Field)
Budgeted capital expenditures for OML 13 - Qua Ibo Field were set at $40.6 million for 2014. In the three months ended March 31, 2014, OER incurred capital expenditures of $6.0 million on pipeline and facility costs as well as flow station construction. Oil production from the Qua Ibo field's is expected to commence in the fourth quarter of 2014 after the commissioning of the OER/Network Exploration and Production crude oil processing facility which is currently under construction and should be completed in the third quarter of 2014. Production is expected to commence in the first quarter of 2015.
OML 134 (Oberan Field)
Budgeted capital expenditures for OML 134 were set at $7.4 million for 2014. In the three months ended March 31, 2014, OER incurred $6.8 million on exploratory activities related to the Mindiogboro prospect. Based on results from the drilling of the exploration well into the Minidiogboro prospect (suspended as a gas discovery), OER plans to continue geological, geophysical, and environmental studies.
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 4,531 barrels of oil per day. 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.
See the Company's Form 51-101F1 filed under the Company's profile on SEDAR at http://www.sedar.com on April 1, 2013.
Oil and Gas Equivalents
Production information is commonly reported in units of barrel of oil equivalent ("boe" or "Mboe" or "MMboe") or in units of natural gas equivalent ("Mcfe" or "MMcfe" or Bcfe"). However, boe's or Mcfe's may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf = 1 barrel, or a Mcfe conversion ratio of 1 barrel = 6 Mcf, is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Readers are cautioned that boe may be misleading, particularly if used in isolation.
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. In particular, this news release contains forward-looking statements relating to intended acquisitions.
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.
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.
For further information:
Pade Durotoye, CEO
Oando Energy Resources Inc.
Head Investor Relations
Oando Energy Resources Inc.
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