500,000bpd drop in oil production due to flooding – DPR

Nigeria’s daily crude oil production for the third quarter of 2012 dropped by 500,000 barrels as a result of production shut-down caused by the ravaging floods in some parts of the country, the Department of Petroleum Resources has said. The department said the actual crude oil (plus condensate) production of the nation was 2.5 million barrels per day for the period.

Some of the companies hit by the flood, according to DPR, were marginal field operator, Sterling Energy, Total Exploration and Producing and Agip, among others. The floods were no threats to oil and gas assets in the country in the long-run, as production would gradually pick up as the floods subsided.

Nigeria’s reserves as at January 1, 2012 were 31.170 billion barrels for oil, 5.018 billion barrels for condensate; 92.6 trillion cubic feet of associated gas and 90.150 tcf for non-associated gas.

Oando makes OML56 Discovery

Oando Energy Resources Inc. has announced the initial drilling results from the fourth well drilled in the Ebendo Marginal Field's 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 11 th, 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).

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.