Oando Secures Funding for Acquisition of ConocoPhillips's Business

Source: www.gulfoilandgas.com 1/31/2014, Location: Africa

Oando Energy Resources Inc, a company focused on oil and gas exploration and production in Nigeria, announced that, further to its press releases dated December 20, 2012, September 16, 2013 and November 28, 2013, it has, subject to, amongst other things, TSX approval, secured funding for the closure of the acquisition of the Nigerian Upstream Oil and Gas Business of ConocoPhillips.

The Company currently estimates that the net purchase price payable to complete the ConocoPhillips Acquisition will be approximately US$1.05 billion (after deducting payment of the US$450 million deposit previously paid, an additional US$50 million to be paid and giving effect to expected adjustments as of the Outside Date) ("Net Purchase Price"). Oando Energy Resources expects to fund payment of the Net Purchase Price using:

i. funds from the corporate facility and reserve-based loan agreement with third party lenders;

ii. proceeds from the proposed private placement of units of the Company, subject to approval by the Toronto Stock Exchange ("TSX"), as announced on January 28, 2014; and

iii. a convertible loan from Oando Plc, the 94.6% shareholder of the Company, subject to, amongst other things, TSX approval.

Pursuant to an amendment agreement executed with ConocoPhillips earlier, Oando Energy Resources and ConocoPhillips agreed to extend the outside date for completion of the ConocoPhillips Acquisition from January 31, 2014 to February 28, 2014 ("Outside Date"). As part of this agreement, OER will pay an additional US$50 million towards the Acquisition for a total deposit of US$500 million.

Closing of the ConocoPhillips Acquisition remains subject to satisfaction of closing conditions, including the anticipated consent of the Honourable Minister of Petroleum Resources in Nigeria.

For more information about related Opportunities and Key Players visit West Africa Projects


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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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