Oando Energy Resources Receives Signed Commitment Letters for up to US$815 Million of Term Bank Financing Towards the

  Oando Energy Resources Receives Signed Commitment Letters for up to US$815
  Million of Term Bank Financing Towards the Acquisition of ConocoPhillips'
                    Nigerian Upstream Oil and Gas Business

  PR Newswire

  CALGARY, Alberta, October 10, 2013

CALGARY, Alberta, October 10, 2013 /PRNewswire/ --

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:

1.up to US$465 million Reserve Based Lending Facility , internationally
    placed and led by BNP Paribas, Standard Bank and Standard Chartered Bank
    (" RBL "); and
2.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 2 ^nd stage in our financing
plan, having initially paid a US$435 million deposit to COP," said
PadeDurotoye, 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 Acquisition."

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 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 ( http://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.

For further information:

Pade Durotoye, CEO Oando Energy Resources Inc.
pdurotoye@oandoenergyresources.com +1-403-561-1713

Tokunboh Akindele Head Investor Relations Oando Energy Resources Inc.
takindele@oandoenergyresources.com +1-403-560-7450

Jeremy Dietz/David Feick Investor Relations +1-403-218-2833
jdietz@tmxequicom.com dfeick@tmxequicom.com


 
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