Oando Energy Resources reports 19.5% increase in production

Oando Energy Resources Incorporated, a subsidiary of Oando Plc, has released its financial and operational results for the six month period ended 30 June 2014.

The company reports an increase in production from existing assets from 687 757 barrels, for the six months ended 30 June 2013, to 821 786 barrels for the period under review.

The average net sales price amounted to $76.18/barrel for the period, representing a decrease of 20.3% from $95.64/barrel for the previous corresponding period.

The company continued to develop the 45 000 barrel/day Umugini pipeline and is aiming to complete construction in Q4 2014.

During the six month period, Oando completed the $1.5 billion acquisition of ConocoPhillips’ Nigerian Business Unit.

Cash outflow for the period amounted to $11.2 million, a substantial decrease from the $22.2 million outflow recorded for the six months ended 30 June 2013. Revenue decreased by $3.2 million from the previous comparative period. Capital expenditure increased from $44.7 million for the previous corresponding period to $66.9 million for this period. The company further reported a loss of $177.5 million.

Oando Energy Resources is an oil and gas exploration and development company with operations offshore Nigeria.