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Oando Energy Resources Resumes Production from Ebendo Field

By: MT Newswires
Posted: 12/27/2012 12:17:00 PM
Referenced Stocks:

Oando Energy Resources Inc. (OER.TO), a company focused on oil exploration and production in Nigeria, today announced an update regarding the damaged 10 inch Kwale-Akri oil delivery pipeline that is operated by Nigerian Agip Oil Company Limited (NAOC) and connects OER's Ebendo Field (OML 56) to the Brass export terminal.

The Kwale-Akri pipeline has been fully repaired and has commenced operations with reduced volumes being injected into the pipeline for testing, to ensure full integrity before full volume capacity is attained. Gross production from the Ebendo Field (OML 56) has recommenced at approximately 2,000 bbls/day, (900 bbls/day net to OER) with a gradual ramp-up to full gross production of 4,000 bbls/day expected over the next several weeks, as full pipeline integrity is confirmed.

Prior to the Kwale-Akri pipeline shut-in, OER was producing approximately 4,600 bbls/day from its two producing assets, the Abo Field (OML 125) and the Ebendo Field. The Abo Field produces 3,225 bbls/day into a floating, production, storage and offloading unit and has not been affected by the pipeline disruptions. As stated above, The Ebendo Field is currently producing 900 bbls/day of production (net to OER), resulting in OER currently producing a cumulative total of 4,125 bbls/day.

OER owns a 42.75% non-operating interest in the Ebendo Field (OML 56).