OANDO PLC SET TO PRODUCE 50 000BPD

Oando Plc is set to produce 50,000 barrels of oil per day, thus becoming one of the highest indigenous producing firm in the nation during its post acquisition years.

The Corporate Communications Manager of the firm, Mr. Alero Balogun stated in a statement that, “Once concluded, the ConocoPhillips transaction will substantially boost Oando Energy Resources’ operations, with circa production of 50,000 bpd post acquisition, generating extensive growth in revenue and profitability.

He stated, “Additionally, the acquisition will immediately position OER as the largest indigenous oil producer in Nigeria, as the company will also grow its 2P reserves and 2C resources by 221MMboe and 492MMboe respectively.

Balogun maintained that the indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange is on the verge of completing its purchase of ConocoPhillips’ Nigerian assets.

He quoted the SBG Securities Oil and Gas Analyst, Gbenga Sholotan as stating that Oando has succeeded in securing all financing required towards the acquisition of ConocoPhillip’s entire Nigerian business for a reported $1.66 billion.

Sholotan is said to have also stated “Oando recently raised an aggregate of US$442m through the sale of the East Horizon Gas Company for $250 million and a special placement of 2.05bn shares for $192 million.
He stated, “All funding sources have now been secured to be in a position to close the ConocoPhillips Nigeria (COPN) asset acquisition. We do not consider the need to obtain the minister of petroleum’s consent as a major risk to this transaction, given antecedents of divestments over the last three years.”
Oando had paid an initial deposit of $450 million, and has received additional funds through debt commitment letters received from financial institutions ($815 million), private placement of shares ($200 million), and the recent sale of its EHGC asset to Seven Energy for $250 million.

Oando holds interests (directly and indirectly) in 15 licenses for the exploration, development and production of oil and gas assets located onshore, swamp, and offshore, our primary task is to harness optimally the potential of our existing portfolio:

Available records showed that Oando Plc holds interests in 3 licenses. It has a 60per cent and 95 per cent working interest in OPLs 278 and 236 respectively.

The Company is also a Nigerian Content Partner with AGIP Oil on OPL 282. Following the reverse takeover of Exile Resources, Oando Plc holds 94.6 per cent in Oando Energy Resources that is listed on the Toronto Stock Exchange. Oando Energy Resources holds interests in 11 licenses.

Positioned as an owner and operator of an oil and gas asset portfolio the company will continue to pursue further investments in selected African Oil and gas producing basins that meet its strategic and financial criteria and position it for growth criteria.