Oando Plc - Oando Announces Production Increase From The Commencement Of Production On Qua Iboe FieldRelease Date: 09/03/2015 14:15:00 Code(s): OAO
(Incorporated in Nigeria and registered as an external company in South Africa)
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: OANDO
OANDO ENERGY RESOURCES ANNOUNCES PRODUCTION INCREASE FROM THE
COMMENCEMENT OF PRODUCTION ON QUA IBOE FIELD
CALGARY, ALBERTA, MARCH 9, 2015 ? Oando Energy Resources Inc. (?OER? or the
?Company?) (TSX: OER), a company focused on oil and gas exploration and production in
Nigeria, today announced the completion of all civil and pipeline works associated with the Qua
Iboe field, and associated crude delivery and sales infrastructure, with commercial production at
2,150 boepd Gross.
OER holds a 40% working interest in the field. In its capacity as technical services provider,
OER, together with the operator and 60% owner, Network Exploration and Production Nigeria
Limited (?NEPN?), brought the field from conceptualization, through development, to first oil
delivery. The commercial oil production from the field?s reservoirs has now commenced at an
initial rate of 2,150boepd gross to the partners. The crude processing facility was commissioned
in the fourth quarter of 2014 but commercial production was delayed until the completion of the
associated cluster crude delivery and sales infrastructure into the Qua Iboe Terminal.
?We are delighted to have achieved this milestone, having taken this field through the full cycle
of asset development, from drilling to facility engineering, construction and commissioning, and
also increasing our organic production contribution from our portfolio,? said Pade Durotoye,
CEO OER. ?We will now be focusing our attention on maturing the potential of this field through
seismic acquisition and interpretation, and a possible multi-well drilling program. We hope the
Qua Iboe field will follow in the footsteps of our successful Ebendo field, where production has
increased from 900bopd (gross) at inception to over 7,500bopd (gross) through the identification
and drilling of new reservoirs in the field.?
The Company identified the asset in 2012 and an agreement was reached with NEPN for OER
to technically lead and fund certain aspects of NEPN?s costs until first oil. Consequently, post
recovery of all loan repayments, OER is entitled to 90% of NEPN?s sales proceeds from its 60%
share of crude oil production until NEPN?s obligation is paid in full, with OER earning an
additional 10% fee on the funded amount.
Qua Iboe is located at the mouth of the Qua Iboe River in the eastern Niger Delta and covers an
area of 14 km2 (3,459 acres). The field is immediately adjacent to the ExxonMobil Qua Iboe
About Oando Energy Resources Inc. (OER)
OER currently has a broad suite of producing, development and exploration assets in the Gulf of
Guinea (predominantly in Nigeria). OER?s sales production was 53,161 boe/d for the month
ending January 31, 2015.
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
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
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
integration of assets acquired under the COP acquisition, 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
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) under 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.
Pade Durotoye, CEO
Oando Energy Resources Inc.
Head Investor Relations
Oando Energy Resources Inc.
(a division of Sasfin Bank Limited)
9 March 2015
Date: 09/03/2015 02:15:00 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department . The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.