Oando, ConocoPhillips need more time to complete Nigerian deal

Business & Finance

March 28, 2014

Oando Energy Resources Inc. a company focused on oil and gas exploration and production in Nigeria, today announced that the outside date for completion of the proposed acquisition of the Nigerian Upstream Oil and Gas Business of ConocoPhillips has been extended to April 30, 2014.

Pursuant to an amendment agreement executed on March 27 2014, Oando Energy Resources and ConocoPhillips agreed to extend the outside date for completion of the ConocoPhillips Acquisition from March 31, 2014 to April 30, 2014 to enable the companies to satisfy all closing conditions including the anticipated consent of the Honourable Minister of Petroleum Resources in Nigeria.

In consideration of this extension OER has consented to increasing its deposit by $25 million on April 17, 2014, if the consent of the Honourable Minister of Petroleum Resources is not received on or before April 11, 2014.

“As we approach the final stage of creating Africa’s leading indigenous independent oil and gas company, we have committed to increasing our deposit as a goodwill gesture to ConocoPhillips, whilst we continue to work together to fulfil all conditions precedent for closure of this transaction,” commented OER Chairman, Wale Tinubu.

In a statement released in January, Oando said the company estimates that the net purchase price payable to complete the ConocoPhillips Acquisition would be approximately US$1.05 billion (after deducting payment of the US$450 million deposit previously paid, an additional US$50 million to be paid and giving effect to expected adjustments as of the Outside Date.

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March 28, 2014