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Oando Energy Resources Announces Completion of the Umugini Pipeline
Oando PLC
(Incorporated in Nigeria and registered as an external company
in South Africa)
External Registration number: RC 6474
Company registration number: 2005/038824/10
Share Code on the JSE Limited: OAO
Share Code on the Nigerian Stock Exchange: OANDO
ISIN: NGOANDO00002
(“Oando” or the “Company”)
OANDO ENERGY RESOURCES ANNOUNCES COMPLETION OF THE UMUGINI PIPELINE
CALGARY, ALBERTA, DECEMBER 4, 2014 – Oando Energy Resources Inc. (“OER” or the
“Company”) (TSX: OER), a company focused on oil and gas exploration and production in
Nigeria, today is pleased to announce the completion of the 45,000bbls/d, 51km Umugini
pipeline. The pipeline will provide an alternative evacuation route for crude oil produced from the
Ebendo Field through the Trans Forcados export pipeline.
Following the successful drilling of Ebendo wells 5, 6, and 7 over the past 12 months, oil
production capacity within OML 56 has grown to 7,140boepd gross for OER and Energia
Limited the operator of the asset (3,052boepd net to OER). However, export had been
constrained at 3,093boepd (1,322boepd OER Share) via the Agip operated Kwale-Brass
NAOC/JV infrastructure, in which OER currently has a 20% interest through the recent $1.5Bn
acquisition of ConocoPhillips Nigerian Oil & Gas Business. The completion and commencement
of operations on the Umugini pipeline ensures that the Ebendo field can now produce at its full
capacity.
Commenting, Pade Durotoye, CEO Oando Energy Resources said: “The completion of the
Umugini pipeline now allows us to maximize the value of our investments to date on the asset
and provides the latitude for further profitable development of prospects and resources identified
in Ebendo”.
Ebendo is located onshore, in the central Niger Delta approximately 100 km north-west of Port
Harcourt and covers an area of 65 km2 (16,062 acres). The License includes two fields, Ebendo
(producing) and the Obodeti field (undeveloped). Oando Energy Resources holds a 42.75%
working interest on the field.
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 14,909 boe/d in the first nine
months of 2014, with only 61 days of production from OMLs 60 -63 attributed to this period.
However production from OML’s 60 - 63 has contributed an average of 46,858boe/d for the 61
days from July 30, 2014 to September 30, 2014.
Cautionary Statements
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
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
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) 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.
5 December 2014
Contact Information:
Pade Durotoye, CEO
Oando Energy Resources Inc.
pdurotoye@oandoenergyresources.com
+1 403-561-1713
Tokunboh Akindele
Head Investor Relations
Oando Energy Resources Inc.
takindele@oandoenergyresources.com
+1 403-560-7450
JSE Sponsor
Macquarie First South Capital (Proprietary) Limited
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