Oando Energy Resources Inc. has said that its net revenue rose to $90.2 million in the second quarter of 2015.
The figure shows an increase of $59.8 million over $30.4 million earned in the second quarter of 2014.
During the six months ended June 30, 2015 revenues increased to $222.7 from $62.6 million earned in the same period of 2014.
The company attributed the increase in revenue between the 2015 and 2014 periods to the ConocoPhilip (COP) acquisition, specifically the producing assets OMLs 60 to 63.
Revenues in the second quarter of 2015 decreased $42.2 million from $132.4 million realized in the first quarter of 2015 due mainly to the result of a portion of second quarter production (with a market value of $23.6 million) not being sold until early July 2015 to accommodate changes to customer lifting schedules.
“While the second quarter of 2015 continued to be a challenging time for the oil and gas industry as a whole, OER has continued to consolidate the assets we acquired in 2014, and reduce expenses,” said Pade Durotoye, CEO of Oando Energy Resources Inc.
“As a result, we are happy to report that production levels have increased to 5.2 MMboe in Q2 2015, an increase of 4% over the first quarter of 2015, and production expenses have been reduced to $9.90/boe, an improvement of 24% compared to the first quarter of 2015.
As we head into the second half of 2015, we will continue with our cost reduction strategies while working with our joint venture partners to identify production optimization opportunities that provide the best return on investment.
I am also happy to report that we have recovered from our production losses experienced as a result of the fire incident at the Ebocha facility and are now producing at pre-incident levels in line with our expectations.”
Key Financial and Operational Highlights
In the second quarter of 2015 the firms production increased to 5.2million barrels of oil equivalent (MMboe) and an increase from 5.0 MMboe achieved in the first quarter of 2015.
During the six months ended June 30, 2015, production increased to 10.2 MMboe compared with 0.8 MMboe in the same period of 2014.
The Company has continued to hedge 9,795 bbl/day of crude oil production at $65/bbl (average) with expiries ranging from July 2017 to July 2019, and further upside if certain price targets are met. The hedges represent 47% of second quarter production rates of crude oil.