Oando completes Nigerian upstream acquisition

Oando Energy Resources Inc. (OER), a company focused on oil and gas exploration and production in Nigeria, announced the completion of its acquisition of the Nigerian Upstream Oil and Gas Business of ConocoPhillips (COP) for a total cash consideration of US$1.5 billion after customary adjustments plus a deferred consideration of US$33 million.

The transaction entails the acquisition of ConocoPhillips’ Nigerian oil and gas businesses consisting of:

• Phillips Oil Company Nigeria Limited , which holds a 20% non-operating interest in Oil Mining Leases (OML) 60, 61, 62, and 63 as well as related infrastructure and facilities in the Nigerian Agip Oil Company Limited Joint Venture. The other coventurers are the Nigerian National Petroleum Corporation with a 60% interest and NAOC (20% and operator).

• Phillips Deepwater Exploration Nigeria Limited, which holds a 20% non-operating interest in Oil Prospecting Licence (OPL) 214 located 110 km offshore in water depths of 800m to 1,800m. The other partners in the joint venture are ExxonMobil (20% and operator), Chevron (20%), Svenska (20%), Nigerian Petroleum Development Company (15%) and Sasol (5%). In June 2014, the Honorable Minister of Petroleum Resources for Nigeria approved the conversion of OPL 214 to OML 145 for an initial period of 20 years.

Pade Durotoye, OER CEO, stated:

This transaction represents a transformational leap 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. Our management team is familiar with these assets and possess the managerial experience and technical expertise necessary to unlock their value for our shareholders.

Mr. Wale Tinubu, OER Chairman, commented:

We believe in the significant potential that the Nigerian oil and gas industry holds and are privileged to play a pivotal role in its consolidation, growth and development. We will continue to seek strategic opportunities that provide a platform for enhanced growth and value creation for our stakeholders.

Upon completion of the transaction, OER will be positioned as one of the leading E&P players in the Nigerian Oil & Gas sector, as measured by end-2013 proved plus probable reserves of 230.6 million barrels oil equivalent (MMboe), best estimate contingent resources of 536.8 MMboe, unrisked best prospective resources of 2,051.8 MMboe.