CALGARY, Alberta, August 20, 2012 /PRNewswire/ –
Oando Energy Resources Inc. (“OER” or the “Company”) (TSX:OER), a company focused on oil exploration and production in Nigeria, today announced the well test results of the EB-4 well’s second zone (Level XIX), which yielded 2,400 bopd of 49 degree API oil using a 28/64″ choke. This result concludes a successful drilling program and well tests on the two strings encountered. Level XIX was the primary target for this well and is also the zone currently producing 2,100 bopd on a 28/64″ choke in the EB-1 well.
The EB-4 well is being completed as a dual-string producer, with Level XIX being produced from the short string and Level XXa producing from the long string. As was announced on August 13, 2012, Level XXa tested up to 950 bopd. Both strings are to be tied into the existing Ebendo Production Facility and will be put on stream as soon as the Drilling Rig skids to the next well (EB-5). The EB-5 well is intended to appraise the intermediate hydrocarbon bearing sands (Levels XV to XVIII) encountered during the drilling of the EB-4 well.
The EB-4 well was spud on March 24, 2012 and was drilled to a total depth (TD) of 12,120ft measured depth (MD) on June 11th, 2012. The well, which was intended to appraise the updip portion of the structure, encountered eight new hydrocarbon bearing sands over an interval from 9,667ft to 11,182ft, each with individual reservoir thicknesses of between 21ft and 110ft. These eight new sand zones were in addition to Level XIX, the producing sand target.
These test results may not necessarily be indicative of the well’s long-term production performance or of ultimate recovery.
OER has a 42.75% Non-Operating interest in the Ebendo Marginal field, which is located in OML 56, onshore Nigeria.
About Oando Energy Resources Inc. (OER)
OER currently has a broad suite of producing, development and exploration properties in the Gulf of Guinea (predominantly in Nigeria) with current production of approximately 4,500 barrels of oil per day. OER has been specifically structured to take advantage of current opportunities for indigenous companies in Nigeria, which currently has the largest population in Africa, and one of the largest oil and gas resources in Africa.
Forward Looking Statements:
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking information or statements. In particular, this news release contains forward-looking statements including relating to next steps, conducting further well tests and the Company’s intentions relating to completion of the EB4-well.
Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that such statements and information will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to: risks related to international operations, the actual results of current exploration and drilling activities, changes in project parameters as plans continue to be refined and the future price of crude oil. Accordingly, readers should not place undue reliance on the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive.
Additional information on these and other factors that could affect the Company’s financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (http://www.sedar.com) for the Company. The forward-looking statements and information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
For further information:
Pade Durotoye, CEO
Oando Energy Resources Inc.
Jeremy Dietz/David Feick
(OER.WT. OER.WT.A. OER.)
SOURCE Oando Energy Resources Inc.
Company Codes: Toronto:OER