Wednesday, August 28, 2019 / 12.40PM / Press release by Eni/Additional report by Proshare research/ Header Image Credit: Oil and Gas Middle East
A trilateral collaborative joint venture (JV)
between the Nigerian National Petroleum Corporation (NNPC), Nigerian Agip Oil
Company, NAOC (an affiliate of Italian Oil major, Eni), and Oando has resulted
in the discovery of large onshore gas and condensate deposits in the Niger
Delta.
The new find is the equivalent of 1 trillion
cubic feet of gas and 60 million barrels of associated condensate, with further
reservoir of potential gas and condensate to be assessed in the next appraisal
campaign. The partners will immediately put on stream processing operations to
increase gas production, says Eni in a press release issued today August 28,
2019.
The NNPC/NAOC/Oando JV is a joint venture
between the Nigerian Agip Oil Company, which holds 20% equity and acts as
operator; Nigerian National Petroleum Corporation (NNPC) which holds 60% equity
and Nigeria's Oando PLC, which owns the balance of 20% equity.
The discovery was made in the deeper sequences of the Obiafu-Obrikom fields in OML61.
The new find is good news for Oando which has had a turbulent year with disagreement with regulatory authorities, the Securities and Exchange Commission (SEC), over the outcome of a Forensic Report into its operations released in Q1 2019.
The new gas and condensate find with early
mobilisation for exploitation should improve top line performance between 2020
and 2022, and bring further comfort to the corporate bottom line as well. If
investors factor in major earnings per share growth over the next 3 to 4 years
on a recent price earnings multiple of 2.38, a hidden value growth opportunity
of between 15% and 20% could be seen as reasonable. The indigenous oil major
could see prices spurt up well above its recent N3.75 in months ahead.
Table 1 Oando Plc Q2 2019 Result
Related
News
1. OANDO
Declares N7.17bn PAT in Q2 2019 Results,(SP:N3.95k)
2.
Federal High
Court Adjourns SEC Vs Oando Case to July 22
3. Deloitte
Issues Press Statement on OANDO Forensic Audit
4. Deloitte
Issues Press Statement on OANDO Forensic Audit
5. Two Weeks
After: OANDO Shares Dropped By -7.14%, -22% YTD
6. FHC Lagos
Adjourns Hearing Between Oando Plc's GCE and Deputy GCE and SEC
7. Oando PLC's
Official Response To SEC’s Suspension Of Its 42nd AGM
8. One Week
After: OANDO Shares Dropped By -4.76% WoW, -20% YTD
9. Chief Sena
Anthony and Mr. Oghogho Akpata Resign From OANDO’s Board Effective June 3rd,
2019
10. Oando Share
Price Drops 20% Off The Back Of SEC Investor Protection Moves
11. NSE Release:
Oando Plc Warns Against Unofficial Company News Circulating In The Media
12. SEC Appoints
Interim Management Team For Oando Plc Headed By Mr. Mutiu Olaniyi Adio Sunmonu
13. Post-Forensic
Exchanges: The SEC Letter to Oando Plc and The Oando Rebuttal
14. OANDO
Declares N4.63bn PAT in Q1'19 Results (SP:N4.85k)