CALGARY, March 27, 2013 /CNW/ - 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
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
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
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
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
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