Oando Energy Resources reduces debt by US$98 million through conversion of Oando Plc loan to equity

 Oando Energy Resources reduces debt by US$98 million through conversion of  Oando Plc loan to equity  CALGARY, Aug. 21, 2014 /CNW/ - Oando Energy Resources Inc. ("Oando Energy  Resources" or the "Company") (TSX:OER), a company focused on oil and gas  exploration and production in Nigeria, is pleased to announce the conversion  to equity of principal and interest in the amount of US$ 98 million,  outstanding under the US$ 1.2 billion facility agreement dated 10 February,  2014 with Oando Plc (the "Oando Loan") (the "Conversion").  US$ 41 million of  principal remains outstanding under the Oando Loan and an aggregate principal  amount of approximately US$ 292 million remains available to be drawn under  the Oando Loan.  OER has issued 68,144,115 units (the "Units") to Oando Resources Limited  ("Oando Resources"), a subsidiary of Oando Plc, as repayment of amounts  outstanding under the Oando Loan at a conversion price of C$1.57 per Unit.  Each Unit consists of one common share of the Company (a "Common Share") and  one-half of one warrant to purchase an additional Common Share at a price of  CAD$ 2.00 per Common Share (each whole common share purchase warrant being a  "Warrant") up until 30 July 2016, a 24 month period from which the Company  closed the acquisition of the Nigerian upstream oil and gas business of  ConocoPhillips. The terms of the Units, other than the denomination of the  conversion price and exercise price in United States dollars, have the same  terms as the Units issued to third party investors and Oando Resources on  previous tranches.  Prior to the completion of the Conversion, Oando Plc owned, and exercised  control or direction over, 677,963,723 Common Shares, representing  approximately 93.2% of the issued and outstanding Common Shares. As a result  of the Conversion, Oando Plc currently beneficially owns, or exercises control  or direction over, 746,107,838 Common Shares, representing approximately 93.8%  of the issued and outstanding Common Shares. Assuming exercise of the Warrants  and warrants previously issued to Oando Plc on previous tranches of the loan,  Oando Plc would beneficially own, or exercise control or direction over,  1,071,500,708 Common Shares, representing approximately 95.6% of the Company's  issued and outstanding Common Shares; however, Oando Plc is restricted from  exercising any warrants that would result in its ownership of the Company  exceeding 94.6%.  Amounts owing under the Oando Loan in the future may be converted into Units  at one or more prices to be determined in accordance with the pricing  mechanism described in OER's press release dated February 10, 2014.  A copy of the early warning report required to be filed with the applicable  securities commissions in connection with the Conversion will be available for  viewing at www.sedar.com or can be obtained by contacting Ayotola Jagun, Chief  Compliance Officer & Company Secretary of Oando Plc, by email at  ajagun@oandoplc.com or by telephone on +234 806 9806190.  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, successful and timely integration of the  business, subsidiaries and assets acquired from ConocoPhillips, 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 under the Company's  profile on  SEDAR website (www.sedar.com). 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.  Pade Durotoye Chief Executive Officer 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  David Feick Investor Relations +1 403-218-2833 dfeick@tmxequicom.com  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/August2014/21/c7707.html  CO: Oando Energy Resources Inc. ST: Alberta NI: OIL  
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