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Nigeria’s leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange, Oando Plc, has recorded N13.1 billion in its unaudited results for the nine months period which ended September 30, 2019.
A statement from the company explains that the figure is an increase of 26 per cent when compared to the N10.4 billion netted during the. same period in 2018
Commenting on the results, Wale Tinubu, its Group Chief Executive Officer, said:
“In the period under review, we made substantial progress on our top priority of operational growth and recorded an 8 per cent increase in hydrocarbon production. In conjunction with our partners, we successfully completed an ambitious six-well drilling programme, the results of which have been positive, and are particularly excited about the discovery of a significant gas and condensate find at a field in OML 61 of our Joint Venture. This has had a major impact on our reserves and consequently future cash flows. Production has since commenced in October on the completed wells, and the gas will largely be channelled to feed the nation’s power sector through our Joint Venture’s Okpai Power plant, Nigeria’s first independent power plant. In addition, we achieved an eight per cent reduction in our debt levels, while growing free cash flows. Over the last quarter of the year, our focus will be on the completion of our drilling program as well as “tie-in” of the new discoveries.
“During the nine months period, production increased by 8 per cent at 43,045boe/day, compared with 40,039boe/day in the same period of 2018. This was driven by an 11 per cent increase in natural gas production (from 120,047mcf/day in September 2018 to 133,415mcf/day in September 2019) and an eight per cent increase in crude oil production (from 16,850bbls/day in September 2018 to 18,147bbls/day in September 2019).
“Over the course of the year, we, in conjunction with our JV partners, have aggressively ramped up our drilling programme towards increasing oil revenue and meeting our gas obligations. “As at September 2019, we have successfully completed a side track at OML 56, shoring up net production by 1,500bbls/day, whilst also drilling and completing five wells across three rig lines at our joint venture operations on OMLs 60-63.”
In September 2019, Oando announced that the NNPC/NAOC/OANDO Joint Venture (JV) (of which Oando Energy Resources [OER] holds a 20 per cent working interest) had made a significant gas and condensate find in the deeper sequences of the Obiafu-Obrikom fields in OML 61, onshore Niger Delta.
Preliminary evaluation indicates that the find amounts to about 1 trillion cubic feet of gas and 60 million barrels of associated condensate in the deep drilled sequences. The well can deliver in excess of 100 million standard cubic feet/day of gas and 3,000 barrels/day of associated condensates.
