OANDO'S SHARES PRICES RISE BY 68PERCENT

Gotten from business day:

Oando stock up 68 percent in a month as investors buy upstream story

The stock of Oando a Nigerian energy company has risen by 68 percent in one month (Dec 3, 2013 – Jan 4, 2014) as investors buy into the oil firms upstream aspirations.

Oando’s shares listed on the Nigerian Stock Exchange (NSE) closed trading on Friday at N26.66 per share, compared to the N15.83 per share it was trading at on December 3. This compares with a 6.3 percent gain for the NSE all share index for the same period.

“We are at the final stages in the execution of our overall strategy to increase our exposure to the upstream sector whilst reducing the dependence on the downstream,” Oando Chief Executive Officer Wale Tinubu, said in a statement on Dec. 20.

In the oil industry, upstream refers to exploration and production, while downstream refers to refining and retailing.

Oando in 2012 outlined plans to purchase ConocoPhillips’ local unit for $1.79 billion.

“This will be a transformational transaction,” Tinubu, said in a statement then.

Oando is seeking to become one of Nigeria’s top oil explorers and producers, he said.

Oando pumps 4,800 barrels of oil a day from its Abo and Ebendo fields.

The Conoco assets give it about 43,000 barrels a day from onshore fields, 213 million barrels of oil-equivalent in proved and probable reserves, and a 17 percent equity stake in the proposed Brass liquefied natural gas project.

The company has already paid a cash deposit of $435 million, while the outside date for completion of the ConocoPhillips acquisition has been extended from November 30, 2013 to January 31, 2014.

PATRICK ATUANYA