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OAO - Oando Plc - Oando takes delivery of its flagship oil rig

Release Date: 13/02/2009 12:00:02      Code(s): OAO
OAO - Oando Plc - Oando takes delivery of its flagship oil rig                  
Oando Plc                                                                       
(Incorporated in Nigeria and registered as an external company in South         
Registration number: RC 6474                                                    
(External company registration number: 2005/038824/10)                          
Share Code on the JSE Limited: OAO                                              
Share Code on the Nigerian Stock Exchange: UNTP                                 
ISIN: NG00000UNTP0                                                              
("Oando" or "the Company")                                                      
Oando takes delivery of its flagship oil rig                                    
Fleet of state-of-the-art rigs now three                                        
Oando, Nigeria`s leading integrated energy solutions provider, has taken        
delivery of an additional rig named the "Constitution" purchased in July 2008   
at a cost of USD $53.5 million. This brings to three the number of rigs in the  
company`s fleet, underpinning its commitment to providing world-class oil       
field services in the Gulf of Guinea.                                           
The three rigs are for swamp operations and have the following specifications:  
S/N  Rig Name       Rig Type   Pressure   Horse   Drilling     Application      
Output     Power   Depth                          
1.   Searex 6       Swamp      10,000     2,000   25,000ft +   Drilling,        
                   barge      psi                             work over         
2.   Searex 12      Swamp      10,000     2,000   25,000ft +   Drilling,        
                   barge      psi                             work over         
3.   Constitution   Swamp      15,000     3,000   30,000ft +   Drilling,        
                   barge      psi                             work over         
                                                              wells and         
Whilst the Constitution and Searex 12 are set to commence long term contracts,  
the Searex-6 is in the final stages of its refurbishment programme and will be  
deployed in the near future.                                                    
Commenting on the acquisition, Mr. Uche Dimiri, Chief Executive Officer, Oando  
Energy Services, said "With the capacity to drill to depths in excess of        
30,000 ft, a pressure output of over 15,000 psi and the ability to handle high  
temperatures, the Constitution is currently the first of its kind in Nigeria.   
The deployment of this rig will ensure that previously inaccessible reservoirs  
can now be explored for their oil and gas content, thereby increasing           
Nigeria`s production and reserves."                                             
According to the Group Chief Executive of Oando, Mr. Wale Tinubu, "A key part   
of our diversification strategy from the downstream to a truly integrated       
company, includes a 5-year, $500 million investment in our energy services      
business. This latest acquisition makes our investment to date in excess of     
$150 million with a further commitment to increase our rig fleet in this        
financial year. The diversified model assures of steady earnings in a period    
of oil price volatility and maximises our shareholder value.                    
He further commented, "once again Oando has demonstrated its commitment to be   
the leading beacon in the oilfield services sector of the Nigeria`s local       
content policy."                                                                
13 February 2009                                                                
Deutsche Securities (SA) (Proprietary) Limited                                  
Date: 13/02/2009 12:00:02 Supplied by www.sharenet.co.za                     
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