Press Release: Oando Energy Resources Announces New Discovery
Oando Energy Resources Inc. (“OER” or the “Company”) (TSX:OER), a company focused on oil exploration and production in Nigeria, today announced initial drilling results from the fourth well drilled in the Ebendo Marginal Field, OML-56 (previously known as Obodeti/Obodugwa) . 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 sands were in addition to the producing sand target previously encountered in the first well (EB-1).
“We continue to successfully advance our appraisal program in the Ebendo Marginal Field,” said Olapade Durotoye, CEO of OER. “Next steps include further evaluating this positive data and further delineation of the discoveries to assess their size and productive capacity, which we expect to begin in the fourth quarter of 2012.”
The deepest of the newly appraised sands, contained in Level XXa, was perforated and tested. The well flowed over 950bopd of 49 degree API oil during a well flow test using a 24/64″ adjustable choke. Further well tests will be conducted over the next few days on the next sand (Level XIX). Level XIX was the primary target for the well, as it was the only identified producing sand from the single producing well in the field. These test results may not necessarily be indicative of the well’s long-term performance or of ultimate recovery.
The Company intends to complete the EB-4 well as a Dual String producer prior to commencing drilling on the EB-5 well, which is intended to appraise the shallow hydrocarbon bearing sands encountered in EB-4.
OER has a 42.7 % Non-Operating interest in the Ebendo Marginal field.
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 (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.
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