Oando Energy Resources signs agreements to acquire ConocoPhillips Nigerian assets for US$1.79 billion
Friday, Dec 21, 2012
CALGARY, Alberta, December 20, 2012 /PRNewswire/ --Oando Energy Resources Inc. ("OER" or the "Company") (TSX: OER), a company focused on oil exploration and production in Nigeria and the Gulf of Guinea is pleased to announce that it has entered into an agreement with ConocoPhillips to acquire ConocoPhillips' Nigerian businesses for a total cash consideration of approximately US$1.79 billion, subject to customary adjustments (the "Proposed Acquisition").
Pursuant to the Proposed Acquisition, OER will indirectly purchase all of the issued share capital of POCNL, PBL, CEPNL and PDENL. Upon closing, the effective date of the Proposed Acquisition will be January 1, 2012.
In connection with the Proposed Acquisition, OER has retained The Petroleum and Renewable Energy Company Limited ("Petrenel"), OER's independent reserves evaluator, to prepare a report on the reserves and resources of OMLs 60, 61, 62 and 63 (together, the "Onshore Assets") and OML 131 and OPL 214 (together, the "Offshore Assets") proposed to be acquired under the Proposed Acquisition. As at the date hereof, Petrenel has prepared preliminary estimates of some of the reserves and resources to be acquired (the "Petrenel Preliminary Estimates"). The Petrenel Preliminary Estimates have an effective date of December 31, 2011 and have been prepared in accordance with National Instrument 51-101 standards and the guidelines set out in the Canadian Oil and Gas Evaluation Handbook. OER expects an Independent Reserves Report to be completed and issued by Petrenel during the first quarter of 2013.
"This potential transaction represents a transformational step forward for our Company and is in keeping with our overall strategy to grow our portfolio of Nigerian-based assets by focusing on those opportunities that deliver high quality growth in reserves and production," said Pade Durotoye, CEO of Oando Energy Resources. "Our management team is familiar with the assets contained in this proposed transaction and, we believe, possess the regional experience and technical expertise necessary to capture and unlock their future value for our shareholders."
Also commenting, Mr. Wale Tinubu, Chairman, OER said "Upon closing, we expect that this will be a transformational transaction for OER, as the company has only been listed on the TSX for about 5 months and now has an opportunity to execute its strategy and materially increase its production and reserves base. In our view, the combination of the right timing, right assets and the right company can lead to significant value creation in the Gulf of Guinea.
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) with current production of approximately 3,300 barrels of oil per day from the Abo Field, (OML 125) and an additional 1,500 barrels of oil per day from the Ebendo Field, (OML 56), once a damaged export pipe line has been repaired or replaced (which is expected to be completed early 2013).
OER has been specifically structured to take advantage of current opportunities for indigenous companies in Nigeria, which currently has the largest population in Africa, and one of the largest oil and gas resources in Africa.
Source: Oando Energy Resources Inc.
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