Reclassified As Low Price Stock, Oando, JV Partners Find Huge Gas Reserves

The Nigerian Stock Exchange (NSE), on Thursday, September 5, 2019, announced the downgraded integrated energy group – Oando Plc from Medium, into Low Priced Stock beginning from the same day.
This, the bourse said in a statement, is in compliance with Rule 15.29: Pricing Methodology, Rulebook of The Exchange, 2015 (Dealing Members’ Rules), after its share price fell below N5 per share and remained so from April 30, 2019, up till close of business on August 30, 2019.
Low Priced Stocks are securities that have traded below N5 per share in four out of the last six months period, as a result of which price movement upward or downward can, henceforth, only occur with a minimum volume of 100,000 units, and tick size of N0.01kobo.
Meanwhile, the management of Oando Plc, also on Thursday, announced a significant gas and condensate discovery Onshore Niger Delta by Joint Venture partnership, which also comprises the Nigerian National Petroleum Corporation (NNPC), Nigeria Agip Oil Company (NAOC) and its Oando Energy Resources (OER), its upstream subsidiary.
While NNPC holds a 60% stake in the JV; both NAOC (the operator) and Oando, each has a 20% stake.
The statement to the NSE said the JV “made a significant gas and condensate find in the deeper sequences of the Obiafu-Obrikom fields, in OML61, onshore Niger Delta,” adding that “the Obiafu-41 Deep appraisal/exploration well has reached a total depth of 4.374m encountering an important gas and condensate accumulation within the deltaic sequence of Oligocene age comprising more than 130m of high-quality hydrocarbon-bearing sands.
The find, the statement by Ayotola Jagun, Oando’s Company Secretary, amounts to about 1 trillion cubic feet of gas and 60m barrels of associated condensate in the deep drilled sequences.
The discovery has a further potential that will be assessed with the next appraisal campaign, even as the well can deliver in excess of 100 million standard cubic feet/day of gas and 3,000 barrels/day of associated condensates. The discovery is part of a drilling campaign planned by the Joint Venture aimed at exploring near-field and deep pool opportunities as immediate time to market opportunities.
The statement expressed OER’s belief “that this discovery will have an impact on its gas reserves. The impact will be determined and communicated to the market on the conclusion of the next annual independent reserves and resources evaluation.”