Yemisi Izuora/Joseph Bakare
Oando Energy Resources (OER) has disclosed a net revenue of $132.4 million in the first quarter of 2015 a performance that indicated an increase of $100.2 million over $32.2 million earned in the first quarter of 2014.
The company attributed the performance to the successful acquisition of Cononco Philips (COP) upstream producing assets of OML 60 to 63.
Result of the performance showed that revenues in the first quarter of 2015 decreased by $41.6 million from $174.0 million in the fourth quarter of 2014, with the quarter to quarter decrease resulting from lower crude oil prices.
The Company had a net loss of $21.1 million in the first quarter of 2015, 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 its 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.
Its production expenses increased to $64.9 million from $7.6 million in 2014 and the increase the company explained was primarily due to additional production expenses from OMLs 60 to 63 of $58.6 million.
Commenting, Pade Durotoye, CEO of the company said “The recent acquisition of the Nigerian upstream business of ConocoPhillips Company again drove substantial improvements in production over the prior year period and daily production remained relatively consistent on a sequential basis compared with the fourth quarter of 2014,” .
Continuing he explained,“During the first quarter of the year, as oil prices continued to weaken, we proactively took measures to improve liquidity by realizing $226.2 million of approximately $313.7 million in total fair value through settlement and re-establishing our financial commodity contracts at lower prices.
Although we took a one time financial charge of $16.4 million relating to the resetting of the financial commodity hedges, we are better positioned for the future as we now enjoy reduced debt levels and lower future interest payments.
Working with our partners, we have taken prudent action to reduce operating costs and defer some capital projects while focusing on high return production enhancement and rigless interventions to strengthen our production base.
We are also advancing work on additional opportunities to strengthen our balance sheet as we manage our way through this lower and volatile commodity price environment.”
The Company also 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.