The financial projections are based upon three separate Competent Persons reports. We have used the low estimate figures, P90, as the basis for valuations. Where P90 is the most conservative evaluation, meaning a 90% probability that the actual quantities recovered will equal or exceed the low estimate.
A January 2014 report by Senergy has reviewed the Petrophysical data and their results suggest significantly greater reserves than the P90 used
A February 2014 report by Count Geo Physics has reviewed the existing seismic data and concludes that there are certainly reservoir quality sandstones present in all of the wells on OPL 236 and suggest significantly greater resources than the P90 used.
An independent valuation prepared by Maurice Eaton, formerly a Director of Northern Petroleum, values the P90 gas resources, after all costs of extraction and taxes, at higher findings as those of the Senergy report.
The first field to be developed in OPL 236 will be Ukana South 1. This is conveniently located only 1km from one of Oando’s major gas pipelines.
Oando Gas and Power has an agreement with the Nigerian Gas Company (NGC), to deliver 22mmscf/d of gas to United Cement Company (UNICEM), to fuel its new cement plant. Ukana South 1 will be participating in this agreement as a gas supplier.