Oando Energy Resources executes second facility agreement with Oando Plc
CALGARY, Dec. 24, 2013 /CNW/ - Oando Energy Resources Inc. ("Oando Energy
Resources" or the "Company") (TSX: OER), a company focused on oil and gas
exploration and production in Nigeria, today announced that it has entered
into a second facility agreement ("Second Facility Agreement") with Oando Plc,
the 94.6% shareholder of the Company ("Oando"), pursuant to which Oando Energy
Resources will borrow US$200million, at an annual interest rate of 5%,
repayable in cash by February 28, 2014. The intended use of proceeds of the
loan will be payment of the purchase price for the proposed acquisition by
Oando Energy Resources of the Nigerian upstream oil and gas business of
ConocoPhillips. Pursuant to the Second Facility Agreement and the facility
agreement between the Company and Oando dated May30,2013, as amended,
Oando Energy Resources owes an aggregate of US$601 million plus interest to
The Second Facility Agreement does not become effective until Oando Energy
Resources confirms in writing to Oando that (i) approval from the Toronto
Stock Exchange in respect of the Second Facility Agreement has been obtained
and (ii) the independent directors of the Company unrelated to Oando have
recommended the approval of the effectiveness of the Second Facility Agreement
to the board of directors of the Company, who have approved the effectiveness
of the Second Facility Agreement (with directors affiliated with Oando
abstaining from the vote).
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
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
SOURCE Oando Energy Resources Inc.
Pade Durotoye, CEO Oando Energy Resources Inc.
email@example.com +1 403-561-1713
Tokunboh Akindele Head Investor Relations Oando Energy Resources Inc.
firstname.lastname@example.org +1 403-560-7450
Jeremy Dietz/David Feick Investor Relations +1 403-218-2833
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CO: Oando Energy Resources Inc.
NI: OIL LOAN MNA
-0- Dec/24/2013 20:43 GMT
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