Oando Energy Resources announces $91 million upsizing of RBL facility and repayment of $100 million Afrexim subordinated loan facility
Nov 03, 2015, 17:00 ET
CALGARY, Nov. 3, 2015 /CNW/ - Oando Energy Resources Inc. ("OER" or the "Company") (TSX: OER), a company focused on oil and gas exploration and production in Nigeria, today is pleased to announce a $91 Million upsizing of its senior secured facility (the "RBL Upsize") from $215 Million to $306 Million, and the repayment of its $100 Million African Export-Import Bank subordinated loan facility (the "Afrexim Facility"), which were utilized in the financing of the $1.5 Billion acquisition of the ConocoPhillips Nigerian Oil and Gas Business ("ConocoPhillips Acquisition") in July, 2014.
The $91 Million RBL Upsize was arranged by Standard Chartered Bank and African Export-Import Bank ("Afrexim") as Mandated Lead Arrangers ("MLAs") with participation from Standard Bank of South Africa Limited, Stanbic IBTC Bank Plc and Natixis.
The proceeds from the Upsize, along with cash on hand, were used to repay the $100 Million Afrexim Facility.
Following the completion of these transactions, OER has total debt outstanding of $546 Million, comprised of:
- $306 Million outstanding under its RBL Facility; and
- $240 Million outstanding under its Corporate Facility.
Combined with cash on hand, OER's net debt position is $500 Million as of October 26, 2015, down 44% from $900 Million outstanding at the completion of the ConocoPhillips Acquisition in July 2014.
Commenting, Pade Durotoye, CEO Oando Energy Resources said: "The upsizing of the RBL loan is a true testament to the quality of the assets we acquired in July 2014. The cashflows from these assets have continued to pay down the Company's post acquisition debt with the assistance of the value realized from the resetting of our hedge instruments, leaving a debt:equity ratio of 0.57 today, compared with 0.91 in July, 2014. OER remains focused on its financial and operational goals of strengthening its Balance Sheet and maintaining stable production levels through production optimization in these times of reduced oil prices and limited capital investment."
About Oando Energy Resources Inc. (OER)
OER currently has a broad suite of producing, development and exploration assets in the Gulf of Guinea (predominantly in Nigeria). Average production for OER in the third quarter of 2015 was 53,169 boe/d.
Oil and Gas Equivalents
Production information is commonly reported in units of barrel of oil equivalent ("boe" or "Mboe" or "MMboe") or in units of natural gas equivalent ("Mcfe" or "MMcfe" or Bcfe"). However, boe's or Mcfe's may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf = 1 barrel, or a Mcfe conversion ratio of 1 barrel = 6 Mcf, is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Readers are cautioned that boe may be misleading, particularly if used in isolation.
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, the integration of assets acquired under the COP acquisition, 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) under 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., [email protected], +1 403-561-1713; Tokunboh Akindele, Head Investor Relations, Oando Energy Resources Inc., [email protected], +1 403-560-7450
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