Oando boosts reserves by $1.8 billion
Renowned global petroleum consulting group, DeGolyer and MacNaughton conducted an annual independent reserves and resources evaluation, which saw OER significantly increase its reserves’ value, both Proved (1P) and Proved and Probable (2P) Reserves by 44 per cent, as a result of technical revisions and its landmark acquisition of the Nigerian upstream oil and gas business of ConocoPhillips.
Proved net reserves (1P) increased by 78 per cent to 288.5 MMboe, while Proved and Probable net reserves (2P) increased by 82 per cent to 420.3 MMboe.
The increase was largely due to the recognition of the precedence of license renewals under the Nigerian Petroleum Act, which is the basis of the extension of the reserves beyond the current license limit.
Highlighting the surge in the reserves, Chief Executive Officer, Pade Durotoye, Oando Energy Resources said, “the 2014 Reserves figures confirm our thesis at the juncture we embarked on the transformative COP acquisition,” said Pade Durotoye. “Subsequently, we’ve thrived in our operational achievements with a five-fold increase in total production from 4,500 boepd to circa 56,000 boepd, and this large Reserves base gives us significant scope and opportunity to further enhance production over the coming years and pursue in-field exploration opportunities that will further increase our Resource Base.”
Recently, OER also completed its 45,000bbls/day throughput volume, 52km Umugini alternate evacuation pipeline for the Ebendo Field, and has underlined its forward approach in the new normal of low prices to reflect the implementation of effective cost-cutting initiatives, disciplined capex investments while optimising production levels via rigless activities, and inorganic growth through M&A deals that provide long term value.
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