CALGARY, Oct. 10, 2013 /CNW/ - Oando Energy Resources Inc. ("OER" or the "Company") (TSX:OER), a company focused on oil exploration and production in
Nigeria, today announced that it has received commitment letters for up
to US$815 million of bank credit facilities which will be largely
applied towards payment of the purchase price in respect of its
proposed acquisition of ConocoPhillips' ("COP") Nigerian upstream oil and gas business (the "COP Acquisition").
The credit facilities comprise:
up to US$465 million Reserve Based Lending Facility, internationally placed and led by BNP Paribas, Standard Bank and
Standard Chartered Bank ("RBL"); and
a US$350 million Senior Secured Loan, jointly arranged locally in Nigeria, by FBN Capital and FCMB Capital
Markets ("Senior Loan").
OER, in its September 16, 2013 press release, advised the market of the
extension of the outside date for the completion of the COP Acquisition
to November 30, 2013 ("Outside Date"). As a result of the termination of the agreement to purchase Phillips
Brass Limited ("PBL") the net purchase price payable to complete the
COP Acquisition was reduced to approximately US$1.22 billion (after
giving effect to the termination of the agreement to purchase PBL,
adjustments as of the date hereof and the deposit already paid to COP).
The RBL and Senior Loan remain subject to various closing conditions,
including execution of definitive documentation.
"The receipt of the commitment letters represents an important step
towards closing the COP Acquisition and concludes the 2nd stage in our financing plan, having initially paid a US$435 million
deposit to COP," said Pade Durotoye, CEO of Oando Energy Resources. "We
have sought to optimally finance this acquisition to retain maximum
value for our shareholders. We will now proceed to the final stage of
concluding the financing required for completion of the COP
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
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
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, 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
through the SEDAR website (www.sedar.com) for the Company. 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.
Jeremy Dietz/David Feick