Oando Energy Resources Inc. Announces Unaudited Consolidated Earnings and Production Results for the First Quarter Ended March 31, 2015; Provides Capital Expenditure Guidance for the Year 2015
May 1 15
Oando Energy Resources Inc. announced unaudited consolidated earnings and production results for the first quarter ended March 31, 2015. For the quarter, net revenue was $132.4 million an increase of $100.2 million over $32.2 million earned in the first quarter of 2014, primarily as a result of the COP Acquisition producing assets of OML 60 to 63. The company had a net loss of $21.1 million, as compared to a net loss of $39.9 million in the first quarter of 2014. The net income improvement, which included a one-time charge of $16.4 million associated with the resetting of Financial Hedge instruments, which was primarily influenced by operations at OMLs 60 to 63, and was partially offset by financing expenses, general and administrative costs increases and increased depletion. Funds from operations increased to $49.4 million, from $20.3 million in the first quarter of 2014 and decreased compared to $52.9 million in the fourth quarter of 2014. The increase from the first quarter of 2014 was primarily as a result of increased cash flow generated by the new production assets acquired in the third quarter of 2014 and the decrease from quarter to quarter was a result of lower crude oil prices. Capital expenditures of $37.8 million were incurred in the first quarter of 2015. The capital expenditures consisted of $20.8 million at OMLs 60 to 63, $12.8 million at OML 125 and $3.9 million spent at Qua Ibo and Ebendo. Net loss per basic and diluted share was $0.03 against $0.40 a year ago.
For the quarter ended March 31, 2015, production increased to 5.0 MMboe (average 55,399 boe/day) from 0.4 MMboe (average 4,531 boe/day) in first quarter 2014 and was consistent with 5.0 MMboe achieved in the fourth quarter of 2014. The increase from first quarter 2014 to first quarter 2015 is primarily from the Nigerian onshore and offshore assets acquired from the ConocoPhillips Company that included substantial production from OMLs 60 to 63, significant reserves and resources, and a considerable base of development and exploration opportunities;
For 2015, the company estimates that $35.6 million will be expended on crude oil related projects and $24.1 million on gas projects in the OMLs 60 to 63 areas. Throughout 2015, the company has estimated $0.6 million in capital expenditures for facility enhancements and has estimated $7.7 million in capital expenditures for facility and pipeline overhauls and enhancements. The company estimates $67.1 million of capital expenditures being incurred on the OML 125 Asset. Furthermore, as a result of decreasing its borrowings by $238 million, the company expects to incur lower interest expense for the balance of the year 2015.
Oando Energy Resources Inc. Announces Board Changes; to Refinance its $100 Million Subordinated Debt Facility
May 1 15
Oando Energy Resources Inc. announced that Mr. Ronald Royal has joined its board of directors and that Lead Director Mr. Chris Harrop is leaving the board. Mr. Bill Watson has assumed the role of Lead Director. Mr. Ronald Royal has over 40 years of experience in the oil and gas industry. From 2002 until his retirement in 2007, he was President & General Manager of Esso Chad where he oversaw the development of the Chad Development Project.
As a result of decreasing its borrowings by $238 million, the company expects to incur lower interest expense for the balance of the year. Finally, the company is advancing efforts to refinance its $100 million subordinated debt facility into a term loan of 4 to 5 years.
Oando Energy Resources Inc. Reports Audited Consolidated Financial and Operating Results for the Fourth Quarter and Year Ended December 31, 2014
Apr 1 15
Oando Energy Resources Inc. reported audited consolidated financial and operating results for the fourth quarter and year ended December 31, 2014. For the year, the company’s net revenue was $421.4 million in 2014, an increase of $294.2 million over $127.2 million earned in 2013, primarily as a result of the COP Acquisition. The company incurred a net loss of $320.0 million during the year, as compared to a net loss of $38.2 million in 2013. This was mainly due to non-cash asset impairment charges of $462.8 million, as well as approximately $84.9 million in transaction costs associated with the acquisition of the ConocoPhillips Nigerian business. Cash flows from operating activities were $116.1 million, an increase of $38.7 million from $77.4 million in 2013, primarily as a result of increased cash flow generated by the Acquisition Assets. The capital expenditures consisted of $38.1 million for enhancing the Acquisition Assets and $122.9 million for Legacy Assets' drilling and completion activities, construction of gathering systems and facilities, and capital asset maintenance projects. Diluted net loss per share was $0.53 compared to $0.36 a year ago.
For the fourth quarter, the company reported revenue of $174,042,000 against $23,976,000 a year ago. Cash flow from operating activities was $63,652,000 compared to $34,523,000 a year ago. Basic and diluted net loss per share was $0.40 against basic and diluted net income per share was $0.32 a year ago. Capital expenditures were $41,206,000 against $45,573,000 a year ago. Net income for the period was $232,033,000 compared to $41,008,000 a year ago.
For the full year 2014, production increased to 9.1 MMboe (average 24,945 boe/day) from 1.5 MMboe (average 3,991 boe/day) in 2013. Crude oil was 4,092,973 bbl against 1,456,818 bbl a year ago. NGL was 475,053 boe/day. Natural Gas was 27,221,832 mcf.
For the fourth quarter of 2014, production increased to 54,721 boe/day from 4,413 boe/day in 2013 which included 50,226 boe/day from the assets acquired in the COP Acquisition. Total production was 5,034,358 boe compared to 406,029 boe a year ago. Crude oil was 2,000,821 bbl against 406,029 bbl a year ago. NGL was 291,907 boe/day. Natural Gas was 16,449,778 mcf.