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Oando Announces New Discovery in Nigeria

Source: www.gulfoilandgas.com 8/13/2012, Location: Africa

Oando Energy Resources Inc, a company focused on oil exploration and production in Nigeria 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 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).

"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.

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