CALGARY, May 16, 2013 /CNW/ - Oando Energy Resources Inc. ("OER" or the "Company") (TSX: OER), a company focused on oil exploration and production in Nigeria, today
announced results from the successful completion and testing of the
Ebendo 5 well. The completion and testing of the Ebendo 5 well, which
is expected to contribute an additional 2,500 barrels of oil per day
("bopd") gross (1,069 bopd net to OER), follows the successful
resumption of 3,200 bopd gross (1,368 bopd net to OER) production on
the Ebendo field, as was announced on April 24, 2013.
"We're extremely pleased to announce the successful completion of the
Ebendo 5 well drilling programme, increasing our net capacity by 1,069
bopd," said Pade Durotoye, CEO of OER. "Ebendo currently has a total
production capacity of up to 7,000 bopd, but is currently subject to
takeaway capacity restrictions as a result of the Kwale-Akri pipeline.
In light of this, we are increasing our efforts to establish our
alternative evacuation pipeline, the 53 Kilometer, 45kboepd Umugini
pipeline, that will further support the development of this field and
reduce our dependence on one evacuation pipeline."
The Ebendo 5 well was spudded as a deviated appraisal/development well
on October 12, 2012, mainly to appraise the intermediate reservoirs
encountered by the earlier Ebendo 4 well. The Ebendo 5 well was drilled
to a total vertical depth (TVD) of 11,513ft and encountered eight
hydrocarbon bearing sands. A drill stem test was successfully completed
on two of these sands (XVIIIc and XVIIId). Sand XVIIId flowed for 18
hours and 30 minutes during the final flow test on four choke sizes. On
average, it flowed on choke 28/64" for 3 hours and 30 minutes, with an
average oil and gas rate of 1,592 bopd and 2.45 mmscf/day,
respectively. Sand XVIIIc flowed for 15 hours and 50 minutes during the
final flow test on three choke sizes. On average, it flowed on choke
24/64" for 8 hours and 23 minutes, with an average oil and gas rate of
840 bopd and 4.62 mmscf/day, respectively. Oil with API gravities of
47.2 degrees and 46.4 degrees were recovered from levels XVIIIc and
XVIIId, respectively. Testing of sand XV is planned to occur during
production, as there was a mechanical failure during testing of this
sand after the completion of the well. However, from Modular Formation
Dynamic Testing (MDT) pressure sampling, the fluid gradient in level XV
was 0.272 pressure per foot (psi/ft), which is indicative of oil, there
was no appreciable steady decline in the pressures during the Test.
The Ebendo 5 well was dually completed and sand XV will be produced
through the short string while sands XVIIIc and XVIIId will be produced
through the long string via a sliding sleeve. The Acme Rig-5 was
released on April 17, 2013 from the Ebendo 5 well site.
The Company further announced that a new rig, the Deutag T-26, has been
mobilised and a sixth well (the Ebendo 6 well) was spudded on April 18,
2013. TVD for the Ebendo 6 well is planned to be at 10,680 ft. To date,
the Ebendo 6 well has been drilled to a total vertical depth of 6,231
ft. The results from this drilling programme will enable further
appraisal of the shallow reservoirs encountered in the last two wells.
As pressure transient analysis or well-test interpretation has not been
carried out, all results disclosed in this press release should be
regarded as preliminary and are not necessarily indicative of long-term
performance or ultimate recovery. The results will be updated when
additional data becomes available.
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 5,205 bopd from the Abo Field
in OML 125 and the Ebendo Field. 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
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 (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.
+1403 561 1713
Head Investor Relations
Oando Energy Resources Inc.
+1403 560 7450
Jeremy Dietz/David Feick
+1 403 218 2833