Oando Energy Resources executes extension of availability period of its senior secured loan agreement for acquisition of Nigerian assets from ConocoPhillips
CALGARY, June 9, 2014 /CNW/ - Oando Energy Resources Inc. ("Oando Energy Resources" or the "Company") (TSX: OER), a company focused on oil and gas exploration and production in Nigeria, today announced that, further to its press release dated April 9, 2014, OER also announces that it has extended the availability period of the US$450 million senior secured facility agreement arranged by a group of international banks including Standard Chartered Bank (acting as Facility Agent and Security Agent), BNP Paribas and Standard Bank of South Africa Limited (the "RBL") to August 31, 2014.
The RBL is a 5.5 year facility which amortises quarterly with an annual interest rate of LIBOR plus 8.5%. Proceeds from the RBL are intended to be used to fund a portion of the purchase price for the ConocoPhillips Acquisition.
All terms and conditions under the initial executed binding documentation remain unchanged.
The company also increased its deposit with ConocoPhillips by $25 million on May 30, 2014, pursuant to the terms of our executed amendment agreement with ConocoPhillips dated April 30, 2014 as disclosed on April 30, 2014. OER has in total paid a $550 million deposit to ConocoPhillips for this acquisition to date.
Forward Looking Statements:
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, this news release contains forward-looking statements relating to intended acquisitions.
Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that such statements and information will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to: risks related to international operations, completion of the ConocoPhillips Acquisition on the terms described or in a timely manner, the actual results of current exploration and drilling activities, changes in project parameters as plans continue to be refined and the future price of crude oil. Accordingly, readers should not place undue reliance on the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive.
Additional information on these and other factors that could affect the Company's financial results are included in reports on file with applicable securities regulatory authorities and may be accessed under the Company's profile on SEDAR website (www.sedar.com). The forward-looking statements and information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE Oando Energy Resources Inc.For further information:
Pade Durotoye, CEO
Oando Energy Resources Inc.
Head Investor Relations
Oando Energy Resources Inc.