At a Gala Night organised by the conference to honour companies which had done so well in the sector over time, NNPC Group Managing Director (GMD) Austen Oniwon lauded “the impressive investment of Oando Oil Company in the oil and gas sector”.

Oniwon said that the company merited the award given its active role in the upstream, mid-stream and the downstream sectors of the oil and gas sector.

He said: “the award is indeed a well-deserved one based on the company’s significant impact in the oil and gas sector.”

The GMD also applauded the organisers of the 2012 Nigeria Oil and Gas, adding that “this year’s conference is unique in various areas of the industry.

“NNPC will continue to support the conference and sponsor the gala night because this is the only avenue where experts, stakeholders and engineers meet to discuss issues affecting the sector.

“We use this medium to appeal for better participation in subsequent years so as to develop the oil and gas industry.”

Also sapeaking, Dr Alirio Parra, the Senior Associate, CWC Group and Chairman of the 2012 NOG Conference, commended “the impressive multi-national investment of Oando Oil Plc both in Nigeria and internationally.”

Parra said that “Oando’s leadership position as Nigeria’s foremost integrated energy company was associated with successful achievements in all its subsidiaries across the entire energy chain.”

The chairman added that the company was Nigeria’s leading energy group with divisions in marketing, supply and trading, gas and power, energy services, exploration and production.

“Oando is a home grown company which has an international standard and had been in the vanguard of operation for years.”

Meanwhile, ExxonMobil won The Best Corporate Social Responsibility Award, Shell won The Best Excellent Company in Local Content Development, while Niger Dock won Best Project Company of the Year. (NAN)

Published in the Vanguard Newspapers
On February 23, 2012

On 17th January, 2012, the Major Oil Marketer Association of Nigeria (MOMAN) comprising Conoil PLC, Forte Oil PLC, Mobil Oil Nigeria PLC, MRS Oil Nigeria PLC, Total Nigeria PLC and Oando PLC issued a press statement detailing the workings of the current subsidy scheme and their roles and responsibilities. On 24, January, 2012, Oando’s Group Chief Executive appeared before the House of Representatives’ Ad-hoc Committee on Subsidy to clarify Oando’s position.

We have elected to issue this press statement for the benefit of our shareholders, customers, suppliers, partners and employees, to highlight and elucidate Oando’s participation in Nigeria’s fuel subsidy scheme.

• As far back as the mid 1970s, the Nigerian Government through the Nigerian National Petroleum Corporation (NNPC) has subsidised the cost of various petroleum products to petroleum distributors for onward delivery to the general public.

 

• To ensure private sector participation in the importation and distribution of petroleum products with the view of eliminating the inefficiencies around the delivery of this service to the Nigerian public, the Federal Government set up the Petroleum Support Fund (PSF) in 2006. The PSF is administered by the Petroleum Products Pricing Regulatory Authority (PPPRA) under the supervision of the Ministry of Finance.

 

• Under the PSF, the private sector and NNPC import PMS into the country at international market prices and sell to consumers at a lower regulated price at the pump.

 

• PPPRA determines the value of the differential through its pricing template and all payments are subjected to audit by appointed government auditors.

 

• The PPPRA is set up by the Petroleum Products Pricing Regulatory Agency (Establishment) Act of 2003 and has a 26 member Board. With adequate representation from a broad section of Nigerian     stakeholder groups, the board comprises of key government institutions such as the Federal Ministry of Finance (FMF), the Federal Ministry of Petroleum Resources (FMPR), the Central Bank

 

• of Nigeria (CBN), the National Bureau of Statistics (NBS); labour   unions like the Nigeria Labour Congress (NLC), the National Union of Petroleum & National Gas Workers (NUPENG), the Petroleum & Natural Gas Senior Staff Association of Nigeria (PENGASSEN) and the Trade Union Congress (TUC); employers of labour such as the Nigeria Employers Consultative Association (NECA) and the Manufacturers Association of Nigeria (MAN); representatives of the media, amongst others.

 

• Oando is the largest private sector and indigenous integrated energy service provider in sub-Saharan Africa. Over the years, we have invested billions of naira in downstream infrastructure, (including reception, storage, distribution facilities and sale outlets) and by our scale; we are the largest importer of PMS next to NNPC. Our downstream assets include:

•          Over 550 Retail Outlets across Nigeria

•          6 storage terminals – 150,000 MT of which 83,000 MT is for PMS

•          3 Aviation Depots–3,000MT Combined Capacity

•          2 Lubes Blending Plants – 100m Litres capacity

•          7 LPG Filling Plants – 764 MT combined capacity

• What we have claimed till date is a reimbursement that has been ascertained and audited by relevant government agencies at every step in the value chain. Every single document has been made available to the investigating bodies carrying out the current review.

 

ANY INSINUATION OR SPECULATION THAT OUR PARTICIPATION IN THE PSF CONSTITUTES AN ILLEGAL ACT OR NEFARIOUS ACTIVITY IS COMPLETELY FALSE. OUR CLAIMS UNDER THE PSF ARE REIMBURSEMENTS FOR COSTS LEGITIMATELY INCURRED BUT OTHERWISE UNRECOVERABLE DUE TO THE LOWER REGULATED SALE PRICE UNDER THE GOVERNMENT’S SUBSIDY INITIATIVE.  ALL SUCH COSTS ARE INDEPENDENTLY ASCERTAINED BY THE PPPRA AND DULY AUDITED.

We hereby restate our continuous commitment to ensuring adequate supply of petroleum products to our customers and the consuming public.

Upstream Division	Midstream Division	Downstream Division
Producing assets: OML 125 & OML 56 Development & appraisal: OML 134, OML 90 Exploration: OPL 236, OPL 278, OPL 282, OPL 321, OPL 323, OML122 & JDZ 5 swamp rigs: 3 Working Assets and 2 under refurbishment. Drill bits and engineering services Total fluids management.	100 km gas distribution pipeline network in Lagos. 128 km gas pipeline system in the South-South Area of Nigeria spanning Akwa Ibom and Cross River states. Akute captive Power Plant 5km gas distribution pipeline network in Port Harcourt, Rivers State.	Over 550 retail outlets across Nigeria 6 storage terminals – 150,000 MT of which 83,000 MT is for PMS 3 Aviation Depots–3,000MT combined capacity 2 Lubes Blending Plants – 100m litres capacity 7 LPG Filling Plants – 764 MT combined capacity

OES Passion is a unique swamp barge with sequential well drilling capabilities and a skidding system that enables it to drill up to six wells in one location. The rig is rated to 3000HP, thereby able to drill up to 25,000ft in water depths of up to 16 ft.

To ensure optimal performance on deployment, OESL committed to a comprehensive lifetime enhancement programme. This upgrade included the restoration of the cantilever skidding system which is expected to save the client up to 30 days for every six wells drilled thus significantly reducing the overall cost of drilling campaigns. Also modernised were the mud pumps, the electric-motor driven engines, the top drive and the accommodation module.

With a technical team that was 99% constituted by Nigerians, several competent indigenous contractors, and the refurbishment project undertaken at the Federal Lighter Terminal in Onne, Port Harcourt, this project is a testament of Oando’s support for the Nigerian Oil & Gas Industry Development Content Act and local capacity development programme of the Federal Government.

According to Mr. Bandele Badejo, Chief Executive Officer of OESL, “The deployment of this rig further underlines OESL’s commitment to ensuring competent indigenous companies take advantage of the provisions of the Nigerian Oil & Gas Industry Development Act. We remain resolute towards developing Nigeria’s upstream service industry and continue to set the benchmark for performance. Following the success of our previously deployed rigs, OESL has built a reputation as the drilling contractor of choice among the major oil companies and we will not relent in our mission to be the upstream preferred supplier of choice as we strive to achieve better operating efficiencies and better safety performance for our clients and other stakeholders”.

Also commenting, Mr. Wale Tinubu, Group Chief Executive Officer, Oando PLC, “Our business strategy of diversification and expansion into the upstream oil & gas sector is yielding positive results, thereby consolidating our leadership as Nigeria’s foremost indigenous integrated energy conglomerate. In 2011, our upstream division accounted for approximately 33% of the group’s profits and this year, we are committed to further increasing our footprint in the upstream sector as we help to meet the nation’s energy challenges. Subsequently, our fourth rig is billed to be deployed in the last quarter of 2012 in line with our resolve to increase earnings by maximising opportunities in the upstream space.”

“This contract is an affirmation of our belief and indeed proof that indigenous companies can execute at world class levels. OES Passion brings to three, the number of rigs we have in our operating fleet, currently executing drilling contracts for the majors in the Niger Delta, reinforcing our business principles of doing things right, creating the right value proposition for our Customers, Government, Host Communities and thereby ultimately increasing shareholder value”. He added.

In line with the group’s unwavering dedication to safety, OESL operates a comprehensive Health, Safety and Environment system that includes an extensive use of risk assessment and proactive prevention programmes such the Task Planning and See-Think-Act-Reinforce-Report processes. This culture has continued to ensure a zero loss time injury as OESL recently celebrated two years of incident-free operations on OES Teamwork on January 21, 2012 and on OES Integrity last year August.

Note to Editors

About OESL

Oando Energy Services Limited is Nigeria’s foremost integrated oilfield services company that utilises industry best practices and innovative technology in delivering safe and environmentally sound well operations and high quality support to E&P companies in the Niger Delta.

The company’s services are aimed at increasing oilfield efficiency, lower operating and production costs improve productivity and increase asset value in a safe manner.

OESL’s oilfield services solutions include:

• Total Fluid Management (Drilling, Production & Completion Fluids)
• Drill Bits and Engineering Services; (Roller Cone and Fixed Cutter)
• Drilling Rigs Services

The company is the largest swamp drilling rig operator in Nigeria with the following rigs in its fleet;

• OES Teamwork
• OES Respect
• OES Integrity
• OES Passion
• OES Professionalism

Ends

For further information, please contact:

Meka Olowola
Head, Corporate Communications

Oando PLC
5th, 7th -10th Floors
2, Ajose Adeogun Street,
Victoria Island
Lagos, Nigeria
molowola@oandoplc.com
DL: 01-2805593
Website: www.oandoplc.com

LTI is an occurrence that results in fatality, permanent disability or time lost from work of one day, shift or more. This is a universal key performance indicator that reinforces the need for strict adherence to safety and environmental requirements in the course of operations. As evident in the last couple of years, the oil and gas operation is highly volatile, we are consciously reminded of these dangers and the need to ensure strict adherence to safety and environmental codes.

Commenting on the milestone achievement, Mr. Bandele Badejo, Chief Executive Officer, OESL said, “This commendable achievement is an indication to our commitment to ensuring that our people work safely.  Paramount to the success of any operation is the attitude of the team to safety and quality.  There are no short cuts to getting the job done, if it’s not safe, we shut it down”  He further added that “While we are reassured that our Environmental, Health, Safety Security and Quality (EHSSQ) processes work, we are not resting on our laurels and continue to encourage a culture where safety is the primary focus through training and coaching.”

OESL Teamwork rig in the past year has successfully drilled, completed and worked over wells in the course of the campaign, without any major incident. The rig is a 3000 HP swamp drilling barge equipped with 10,000 psi Blow Out Preventers (BOP) systems. It has an IDECO built mast and substructure with rated static hookload capacity of 1.5M lbs and capable of drilling up to 25,000 ft. The rig is equipped with three model 645E8 EMD diesel engines, two model T-1600 IDECO mud pump, three Derrick Linear Motion Shakers, two Hi-G- dryers, and Varco TDS-3 Top Drive.

In August, 2011 OES flagship rig Integrity also celebrated 2 years of without a Lost Time Incident. In addition, Oando PLC subsidiaries over the year have achieved Standard Organisation of Nigeria ISO 9001:2008 international certification for their exemplary quality and safety standards. They include, Oando Supply & Trading and Oando Exploration & Production, Oando Marketing PLC and Oando Gas and Power to bring the number of Oando entities with ISO 9001:2008 to four, reinforcing the organisation’s commitment to proactive risk management system.

Oando’s   vibrant policies and procedures cover product quality, safety, environment, health, security and emergency readiness, to ensure that all its operations meet international safety requirements. The company is very keen on safety and in an effort to inculcate (EHSSQ) culture amongst its employees, training, regulatory certifications and a “stop work” policy where employees on the rig are empowered to stop work if they observe an unsafe condition is imbibed. An annual “Safety Week” is also held companywide to deepen awareness and strengthen an incidence-free work life culture, which has become imperative following the company’s expansion into the entire energy spectrum.

Oando Energy Services Limited (OESL) is a leading indigenous energy services

Note to Editors

Oando Energy Services Limited (OESL) is a leading indigenous energy services company that offers high quality oilfield services to Exploration &Production companies operating in Nigeria by deploying a suite of best practices, innovative technology, safety procedures, high quality support and environmentally sound well site operations, which increases efficiency, lowers operating costs and enhances asset value for its clients.

OESL commenced operations over 14 years ago but re-tooled to its current business outlook in 2005 when its services were structured along three major offerings namely:

• Drilling and Completion Fluids Services
• Drill Bits and Engineering Services
• Drilling Rigs

This enterprise refocusing was boosted through partnerships with leading global companies leading to its emergence as the oilfield services company of choice in its markets. In 2004, the company entered into a technical alliance with Halliburton’s Baroid for Drilling Fluids. This partnership enabled OESL to deliver supply chain services to world class work program like the Erha and Agbami Field Development Projects. OESL subsequently signed a Consignment Sales Distributor Agreement with Halliburton’s Drill Bit and Services division for the provision of Drill Bits.

In furtherance of its strategic growth plan, OESL commenced its third service line in 2007 when it acquired two swamp drilling rigs. It later added three swamp rigs to become the largest swamp rigs operator in Nigeria with five rigs. Some of these swamp rigs are currently drilling for major International Oil Companies.

Ends

For More information, please contact:

Meka Olowola

Head, Corporate Communications

Oando PLC

5th, 7th -10th Floors

2, Ajose Adeogun Street,

Victoria Island

Lagos, Nigeria

DL: 01-2805593

Website: www.oandoplc.com

]]> http://www.oandoplc.com/media/press-release/oando-rig-marks-2-years-of-safe-operations/feed/ 0 http://www.oandoplc.com/media/press-release/us-trade-and-development-agency-partners-oando-gas-power-on-gas-infrastructure-development/ http://www.oandoplc.com/media/press-release/us-trade-and-development-agency-partners-oando-gas-power-on-gas-infrastructure-development/#comments Wed, 07 Dec 2011 12:11:13 +0000 Oando Super-Admin http://www.oandoplc.com/?post_type=press_release&p=2249 . . .]]>

Lagos, Nigeria – Oando Gas and Power Limited (OG&P), Nigeria’s leading indigenous natural gas distribution and captive power solutions company, and a subsidiary of Oando PLC, today announced that it has entered into agreement with the United States Trade and Development Agency (USTDA) to jointly fund a feasibility study towards the development of an interstate natural gas transportation pipeline from the Excravos-Lagos Pipeline System to other Southwest States.

The agreement was signed on behalf of Oando Gas and Power by the company’s Chief Executive Officer, Mr. Bolaji Osunsanya, whilst the United States Consul General to Nigeria, Mr. John Stafford signed for the USTDA, at an official signing ceremony hosted by the US Consul General on Wednesday, November 30, 2011 in Lagos.

The study will evaluate technical and economic considerations for the development of a natural gas pipeline originating in Sagamu in Ogun State and passing through Ibadan (Oyo State) and Ilorin (Kwara State) before terminating at Jebba, Kwara State. The pipeline will also have extensions to the adjacent states of Osun and Ekiti. The supply of natural gas to the South-West States will provide an opportunity for industries in the region to access a cheaper, reliable and cleaner fuel that will boost power generation and economic growth through increased industrialization. This development is in line with the current drive by the Nigerian National Petroleum Corporation (NNPC) to boost domestic gas supply under the Nigerian Gas Master Plan.

Commenting on the partnership, Mr. Osunsanya, stated; “the USTDA assistance provides the much desired boost to our aspiration to develop the Nigerian Gas Grid and in so doing, support the Federal Government in achieving its gas revolution agenda.”  Commenting further, he said: “Oando Gas and Power continues to seek opportunities to expand its gas infrastructure to reach more industries through pipeline distribution grid and Compressed Natural Gas (CNG) stations.”

Also commenting, Mr. Stafford stated; “The U.S. Trade and Development Agency (USTDA) is pleased to partner with Oando Gas and Power Limited on this important project, which will be of mutual economic benefit to the United States and Nigeria, and will serve to facilitate trade and strengthen our countries’ economic ties.”

About Oando Gas and Power (OGP)

Oando Gas and Power is the management company for all Oando PLC’s subsidiaries operating in the gas and power space:

Gaslink (Lagos Greater Area): In the Lagos greater area, over 120 industries are connected to our 100km Gaslink grid, cutting their energy costs by as much as 50%. This has tremendously improved their profitability and made them globally competitive brands. Gaslink has operated this franchise for more than 11 years now without any safety incident.

Akute Power: On the back of the Lagos pipeline, Oando Gas and Power built a 12.15MW Power Plant for the Lagos Water Corporation. This gas fired plant increased the efficiency of the corporation by 300% to provide potable clean water to the residents whilst saving the state $3.9million annually.

Central Horizon Gas Company (Port Harcourt Disco): In August 2011, Oando Gas and Power assumed the management of an existing gas pipeline in Port Harcourt. The pipeline which has a throughput of about 40 million standard cubic metres per year (mmscm/year), currently serves industries in Trans-Amadi area. This project is poised to inject life into the industries for which Port Harcourt was known but have declined over the years due to the high cost of energy.

East Horizon Gas Company (Akwa Ibom – Cross River State): Oando Gas and Power added a 128km gas pipeline from Akwa Ibom to Cross River State to its growing list of natural gas pipeline systems. The pipeline was built by East Horizon Gas Company (EHGC), a special purpose vehicle set up by Oando under a joint venture arrangement with the Nigerian Gas Company (NGC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).

Connected to the existing NGC’s Obigbo – ALSCON pipeline at Ukanafun in Akwa Ibom State, the natural gas system can deliver up to 100 million standard cubic feet per day (mmscf/d) to industries in the region, including an initial supply of 22 mmscf/d to its foundation customer, United Cement Company (UNICEM), a 2.5 million metric tonnes per annum cement Plant, located in Calabar, Nigeria.

Central Processing Facility: In March 2011, Oando Gas and Power in consortium with Italian giant ENI, was awarded Federal Government’s mandate to develop a Central Processing Facility at Obiafu, Rivers State as part of the Nigeria Gas Master Plan programme and as an enabler of the Government’s rapid industrialisation agenda.

On completion, the Oando-ENI CPF is expected to process about 600 million standard cubic feet of gas per day to be made available to the domestic market.

For more information, please contact:

Meka Olowola

Head, Corporate Communications
2, Ajose Adeogun Street,

Victoria Island

Lagos, Nigeria

molowola@oandoplc.com

Tel: +234 (1) 2702400 Ext 6376

Fax: +234 (1) 261 1366

DL: 01-2805593

Published: 22 Nov, 2011

Leading Nigerian indigenous oil company, Oando Plc, Monday made history with the successful completion of 128-kilometre gas pipeline system from Akwa Ibom to Cross River State, built by Oando Gas and Power, one of its subsidiaries.

Minister of Petroleum, Mrs. Diezani Alison-Madueke, immediately announced that the inauguration of the project marked the successful take-off of the gas revolution programme of the Federal Government.

Speaking during the inauguration Monday, Group Chief Executive Officer of the company, Mr. Wale Tinubu, said the pipeline was built under a joint venture arrangement with the Nigerian Gas Company (NGC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).

He disclosed that the 18-inch pipeline would accelerate industrialisation in the South-south region by providing cheaper, safer, cleaner and environmentally friendly fuel to industries in the region.

“The gas infrastructure has the capacity to deliver up to 100million standard cubic feet per day (mmscf/d) of natural gas and will deliver an initial 22mmscf/d of gas to its maiden customer, United Cement Company (UNICEM), to fuel its new 2.5million metric tonnes per annum cement plant, located in Mfamosing, Akampka Local Government Area of Cross River State,” he said.

Tinubu said his company pioneered the private sector pipeline and distribution of natural gas to industrial and commercial consumers.

According to him, the distribution of natural gas is helping indigenous industries become globally competitive and increasing their profitability by cutting energy cost by as much as 50 per cent.

He noted that first gas was delivered from the company’s Lagos grid, developed under Build, Operate and Transfer (BOT) arrangement with NGC in year 2000, to Cadbury, a leading confectioner.

“Today, over 120 industries are connected to the approximately 100 kilometres of gas pipeline in the Ikeja and Greater Lagos business communities and are fast enjoying gas advantage,” he added.

He expressed appreciation to the governments and people of Akwa Ibom and Cross River States for their support in making the project a success.

In her address, Alison-Madueke said the completion of the project marked the successful take-off of the gas revolution programme of the Federal Government, which targets a $25 billion worth of investment, and would generate about $10 billion over the next three years.

According to her, over 500,000 direct and indirect jobs are expected to be created from the Oando gas project and other similar projects contained in the gas revolution agenda.

“The completion of this project marks the beginning of a journey towards the restoration of Nigeria into the league of Nations that have successfully enjoyed the advantage of the abundance of natural gas to positively impact on the lives of present and future generations of their citizens. By 2014, this present government would have positioned Nigeria firmly as the undisputed regional hub for such gas-based industries as fertiliser, petrochemicals and methanol.

“As a nation, we are continually striving to realise the fullness of the great potentials in the vast human and natural resources which Nigeria has been blessed with. One such major resource is our proven gas reserves base estimated at 187trillion cubic feet and a further undiscovered potential of 600 trillion cubic feet,” she said.

URL: http://www.thisdaylive.com/articles/gas-revolution-oando-launches-128-km-pipeline/103370/

• Turnover grew by 41%, N392.3 billion compared to N277.5 billion (2010)
• Gross profit grew by 14%, N49.6 billion compared to N43.6bn (2010)
• Profit-Before-Tax grew by 39%, N19.4 billion compared to N13.9 billion (2010)
• Profit-After-Tax grew 34%, N10.2 billion compared to N7.6 billion (2010)

Operational Highlights:

• Oando Gas and Power (OGP) commissioned its second franchise, the 128km East Horizon Gas Pipeline in the Southeast
• OGP also commenced gas distribution in a third franchise at the Rivers State Government’s existing gas infrastructure in Port Harcourt
• Executing a Reverse Takeover of Canadian listed Exile Resources Inc., to create Oando Energy Resources Inc.
• OES Integrity, one of the rigs in operation achieved two years of zero-incident drilling

Commenting, Mr. Wale Tinubu, Group Chief Executive, Oando PLC said: “We are pleased to report another positive set of numbers for the third quarter 2011 which underscores the leverage of the strength and uniqueness of our diversified business model.

In the Upstream, we are in the process of executing a Reverse Takeover of Canadian listed Exile Resources Inc., to create Oando Energy Resources Inc., an international platform to fund the substantial investment required for E&P growth. In our operations as a company, safety is a major driver, so we are pleased to report 24 months of incident free rig operations. In the Midstream; the quarter experienced increasing industrial conversion to gas by adding connects to our Lagos pipeline grid, the commissioning of our 2nd franchise- the 128km East Horizon Gas Pipeline in the Southeast and the commencement of operations of the 3rd franchise, the Rivers State Government’s existing gas infrastructure in Port Harcourt. In the Downstream, our companies sustained pole position in the supply and distribution of petroleum products across the country.

In the fourth quarter, additional cash flow will be generated from the deployment of our 3rd rig with an IOC, the flow of gas from the new pipeline systems in the Southeast and South-South regions of Nigeria and the downstream division which traditionally benefits from high seasonal demand.

We anticipate a robust financial year end, as we continue to create superior value for our shareholders through innovative initiatives which benefit from favourable local incentives, government policies and the high international price of petroleum commodities.”

Ends.

For further information, please contact:

Meka Olowola

Head, Corporate Communications

2, Ajose Adeogun Street,

Victoria Island

Lagos, Nigeria.

DL: 01-2805593

Tokunboh Akindele

Head, Investor Relations

2, Ajose Adeogun Street,

Victoria Island,

Lagos,Nigeria.

Tel: +234 (1) 2601290-9,Ext 6396

aakindele@oandoplc.com

]]> http://www.oandoplc.com/media/press-release/oando-plc-announces-q3-2011-results-posts-over-n49bn-gross-profit/feed/ 0 http://www.oandoplc.com/media/press-release/oando-and-exile-resources-enter-into-definitive-master-agreement/ http://www.oandoplc.com/media/press-release/oando-and-exile-resources-enter-into-definitive-master-agreement/#comments Thu, 13 Oct 2011 14:59:24 +0000 Oando Super-Admin http://www.oandoplc.com/?post_type=press_release&p=2150 . . .]]> PRESS RELEASE

Not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States of America

13 October, 2011 (Toronto, Ontario): Oando PLC (“Oando”) and Exile Resources Inc. (“Exile”) (TSXV:ERI) are pleased to update all stakeholders that they have entered into a definitive master agreement dated 27 September, 2011 (“Master Agreement”) in satisfaction of conditions provided in the previously announced acquisition transaction.

Oando, Nigeria’s leading indigenous integrated energy group listed on both the Nigerian Stock Exchange and JSE Limited and Exile, a Canada-based public company listed on the Venture Exchange of the Toronto Stock Exchange (“TSX”) had earlier executed a term sheet dated 28 July, 2011 providing for the acquisition by Exile of certain interests of Oando in respect of Oil Mining Leases and Oil Prospecting Licenses in exchange for 100,000,000 post-consolidation common shares in the capital of Exile. Upon completion of the acquisition, Oando will own at least 94% of Exile.

In addition, the Master Agreement provides that Exile shall issue to Oando up to an additional 2,164,500 shares in the event that Oando increases its ownership of an identified existing asset prior to closing, to be issued in proportion to the amount of any such increase in ownership

In connection with the acquisition, Exile shall, by way of plan of arrangement and together with the acquisition, change its name to Oando Energy Resources Inc and effect a consolidation of its outstanding common shares on a basis such that the current shareholders of Exile will receive in exchange for each 16.28 common shares currently held: (i) one post-consolidation share; and (ii) two share purchase warrants of Exile (post-transaction (as defined below)), one of which will be exercisable for a period of 12 months for one share at a price per share of C$1.50; and the second of which will be exercisable for a period of 24 months for one share at a price per share of C$2.00 (the “Restructuring” and together with the acquisition, the “Transaction”).  Exile also proposes to adopt a new stock option plan in connection with the Restructuring, which will provide for the issuance thereunder of such number of shares as is equal to 10% of the total number of shares issued and outstanding from time to time (the “New Stock Option Plan”).

Exile and Oando do not anticipate completing a financing in connection with the Transaction.

Following the completion of the Transaction, it is expected that the board of directors of Exile (the “Board”) will consist of seven persons, as follows: Messrs. Jubril Adewale Tinubu, Omamofe Boyo and Olapade Durotoye (each a nominee of Oando) and Messrs. Stan Bharti, Christopher J.F. Harrop, Tony Henshaw and Ian Gray (each an existing director of Exile). In addition, Mr. Stan Bharti will resign as Chairman of the Board and be replaced in such role by Mr. Jubril Adewale Tinubu, and Mr. Tony Henshaw will resign as Chief Executive Officer of Exile and be replaced in such role by Mr. Olapade Durotoye. Mr. Darren Moulds will continue in his role as the Chief Financial Officer of Exile on an interim basis.

Completion of the Transaction is subject to a number of conditions, including;

• The approval of the TSX and TSX Venture Exchange (“TSX-V”) and other regulatory approvals
• The completion of satisfactory confirmatory due diligence, as well as the requisite majority approval of shareholders of Exile.

There can be no assurance that the Transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in any management information circular or filing statement to be prepared in connection with the Transaction, any information released or received with respect to the proposed Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Exile should be considered highly speculative. The TSX-V has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this press release.

Meka Olowola

Head, Corporate Communications

2, Ajose Adeogun Street,

Victoria Island

Lagos, Nigeria

DL: 01-2805593

nolowola@oandoplc.com

Tokunboh Akindele

Investor Relations

2, Ajose Adeogun Street

Victoria Island

Lagos, Nigeria

Tel: +234 (1) 2601290-9, Ext 6396

aakindele@oandoplc.com

1. Is Oando exiting the E&P Business?

No, Oando is not exiting the E&P business but rather strengthening its commitment to the growth of its E&P business by giving it a platform to raise equity for faster growth through both organic and inorganic means.

2. Does this mean Oando is selling its E&P Division to Exile?

No, Oando is not selling its E&P Division to Exile, but rather undergoing a Reverse Take-Over (RTO). An RTO is a financial arrangement where a large unlisted company (Company A) offers shares itself to be acquired by a smaller listed company (Company B) in exchange for shares in the combined company (Company C). Company A thus owns a very large percentage of the new company C (in our case 95%), has majority seats on the Board of Directors and selects the management team. In most cases, such as this one, Company C changes its name to Company A’s name.

3. So the E&P Division will not be called “Exile Resources Inc.” when this transaction is completed?

Yes, upon completion of the transaction, the new company will be called “Oando Energy Resources Inc.” (“OER”).

4. So, who runs the new company, Oando or Exile?

The board of directors of OER will comprise three executives from Oando; Messrs. Wale Tinubu, Omamofe Boyo, and Olapade Durotoye, and Messrs. Stan Bharti, Christopher J.F. Harrop, Tony Henshaw and Ian Gray, existing directors of Exile. Mr. Wale Tinubu, will be appointed as the Chairman of OER.

5. What is OEPL’s current relationship with Exile Resources Inc?

OEPL (a subsidiary of Oando Plc) is a joint venture partner with Exile Resources Nigeria Limited (a subsidiary of Exile Resources Inc.) on the Akepo Field located within OML 90 in Nigeria (“Akepo Field”). OEPL acquired 75 % participating interest out of Exile’s 40% participating interest in the Akepo Field in 2009. Thus, OEPL owns 30% participating interest in the Akepo Field, whilst Exile owns 10%. Sogenal Limited (the operator of the Field), owns the balance 60%.

OEPL is the Financial and Technical Partner, which means OEPL is obligated to fund the joint operations and provide technical and management services to Sogenal in return for a higher than 30% portion of the cash flow.

6. What is the benefit of the RTO transaction and listing on the Toronto Stock Exchange (TSX) to Oando?

The RTO and listing transaction will create a platform that will facilitate the E&P Division’s access to equity capital required for the acquisition of proven and producing assets, as well as the further development of its current E & P portfolio, which is comprises of current production of 5,000 barrels a day, near term development opportunities and exploration upside.

In addition, by carving the E&P Division out of Oando PLC, Oando PLC’s shareholders will receive a proper valuation for the E&P Division’s assets, which are currently subsumed, at a discount, in Oando PLC’s share price. By having a listing on one of the foremost exchanges for resource companies, we are enabled to grow and create value at a faster pace than our previous debt-financed and Group-financed pace allowed.

The transaction will also create a standalone E & P company that would be readily comparable to its international peers and provide a pure play investment vehicle for our shareholders and new investors.

7. What stage is the transaction currently at?

Oando executed a definitive Master Agreement with Exile Resources Inc. on September 27^th 2011, as provided in the previously announced Term Sheet dated July 28^th 2011.

8. When is the transaction expected to be concluded?

We expect to receive final approvals before the end of 2011.

9. How is this expected to play out?

Completion of the transaction is subject to a number of conditions, including the approval of the TSX Venture Exchange, Toronto Stock Exchange and completion of satisfactory confirmatory due diligence and requisite majority approval of shareholders of Exile. There can be no assurance that the Transaction will be completed as proposed or at all. OER would be a separately listed company from Oando PLC, with majority shares owned by Oando PLC and listed on the Toronto Stock Exchange. This listing still keeps the asset holding companies, as Nigerian companies and the E&P Division’s assets Nigerian owned, with the company on the fast track path to becoming Nigeria’s leading indigenous E&P Company.

10. Does this mean the transaction will be completed upon and subject to approvals from Exile shareholders and regulatory bodies?

Yes.

11. What is the next step after transaction is concluded?

Oando Energy Resources Inc. will be listed on the Toronto Stock Exchange as a subsidiary of Oando Plc.

12. Will OEPL still exist after completion of this transaction?

OEPL as a legal entity will still exist however OER will be the vehicle through which Oando Plc will execute all its E&P aspirations and OEPL would not compete with OER with respect to participation in the E&P business.