Oando Energy Resources announces Q2 2015 results

Oando Energy Resources Inc., a company focused on oil and gas exploration and production in Nigeria, yesterday announced financial and operating results for the three and six months ended June 30, 2015.

The unaudited consolidated financial statements, notes and management’s discussion and analysis pertaining to the period are available on the System for Electronic Document Analysis and Retrieval (“SEDAR”).

All monetary figures reported herein are U.S. dollars unless otherwise stated.

“While the second quarter of 2015 continued to be a challenging time for the oil and gas industry as a whole, OER has continued to consolidate the assets we acquired in 2014, and reduce expenses,” said Pade Durotoye, CEO of Oando Energy Resources Inc.

“As a result, we are happy to report that production levels have increased to 5.2 MMboe in Q2 2015, an increase of 4% over the first quarter of 2015, and production expenses have been reduced to $9.90/boe, an improvement of 24% compared to the first quarter of 2015.

As we head into the second half of 2015, we will continue with our cost reduction strategies while working with our joint venture partners to identify production optimization opportunities that provide the best return on investment.

I am also happy to report that we have recovered from our production losses experienced as a result of the fire incident at the Ebocha facility and are now producing at pre-incident levels in line with our expectations.”

In the second quarter of 2015 production increased to 5.2 MMboe (average 56,917 boe/day), up from 0.4 MMboe (average 4,549 boe/day) in the second quarter of 2014, and an increase from 5.0 MMboe (average 55,399 boe/day) achieved in the first quarter of 2015.

During the six months ended June 30, 2015, production increased to 10.2 MMboe (average 56,163 boe/day), compared with 0.8 MMboe (average 4,540 boe/d) in the same period of 2014.

The production increase in 2015 over the same period in 2014 is primarily attributable to the Nigerian onshore and offshore assets acquired from the ConocoPhillips Company (“COP Acquisition”), which included substantial production from OMLs 60 to 63, significant reserves and resources, and a considerable base of development and exploration opportunities.

– Net revenue was $90.2 million in the second quarter of 2015, an increase of $59.8 million over $30.4 million earned in the second quarter of 2014.