Petroleum Africa
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Tuesday, February 4, 2014
Oando Energy Resources (OER) reported that it has secured funding for the closure of the acquisition of ConocoPhillips’ upstream business units in Nigeria. The closure is subject to, among other things, approval of the TSX.
The company currently estimates that the net purchase price payable to complete the ConocoPhillips acquisition will be approximately $1.05 billion (after deducting payment of the $450 million deposit previously paid, an additional $50 million to be paid and giving effect to expected adjustments as of the outside date).
Oando Energy Resources expects to fund payment of net purchase price with funds from the corporate facility and reserve-based loan agreement with third party lenders, proceeds from the proposed private placement of units of the company, and a convertible loan from Oando Plc, the 94.6% shareholder of the company. All funding is subject to the approval of the TSX.
Pursuant to an amendment agreement executed with ConocoPhillips, OER and ConocoPhillips agreed to extend the outside date for completion of the ConocoPhillips Acquisition from January 31 to February 28. As part of this agreement, OER will pay an additional $50 million towards the acquisition for a total deposit of $500 million.
Closing of the ConocoPhillips acquisition remains subject to satisfaction of closing conditions, including the anticipated consent of the Minister of Petroleum Resources.
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