Oando Energy Resources Announces Year End Results, Reserves Update

Oando Energy Resources Inc. (OER.TO), a company focused on oil exploration and production in Nigeria, announced financial and operating results for the year ended December 31, 2012.

Financial Highlights include: US$56.9 million in cash flow from operating activities for the year ended December 31, 2012. This represented an increase of 4% from the previous year; $15.6 million in net income for the year ended December 31, 2012. This represented an increase of 699% from the previous year.

Operational Highlights

– On December 20, 2012 the Company entered into an agreement with ConocoPhillips to acquire ConocoPhillips’ Nigerian businesses for a total cash consideration of approximately US$1.79 billion. The closing of the acquisition is subject to customary conditions including the receipt (or waiver) of all approvals or consents from any governmental authority; and the waiver or non-exercise of rights of first refusal, if any, with respect to the shares to be acquired by OER and the assets underlying such shares.

– On March 27, 2013 the Company announced that it had entered into binding documentation to acquire a 40% working interest in the Qua Ibo Marginal Field within OML 13, located onshore Nigeria, adding 1.04 Mmboe of \Proved plus Probable (2P) Reserves and 2.37 Mmboe of Best Estimate (2C) \Resources (net to OER). The acquisition is subject to approval by the TSX.

– 4,051 boepd in average net production for the year ended December 31, 2012. This represented an 18% decrease from the previous year.

– $133.7 million in revenue from the sale of crude for the year ended December 31, 2012. This represented a 15% decrease from the previous year and was attributable to lower production in 2012 compared to 2011. This was a result of the natural decline in the reservoirs of the producing fields; and shut in of wells in OML 56 (Ebendo) field as was earlier announced.

– Average Gross sales price realized per barrel of oil produced was $110.21 for the year ended December 31, 2012.

– 15.22 million boe of Proved plus Probable (2P) Reserves for the year ended December 31, 2012.

– 27.00 million boe of Best Estimate (2C) Contingent Resources for the year ended December 31, 2012.

[Nasdaq]

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