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March 27, 2013 /PRNewswire/ --
Oando Energy Resources Inc. ("
OER" or the "
TSX: OER) is pleased to announce that, further to its press release dated
September 17, 2012, it has signed binding documentation ("
Final Agreements") with Oando Plc ("
Oando"), to indirectly acquire, from Oando, equity interests in Oando Qua Ibo Limited ("
OQI"), a Nigerian company established to hold a 40% participating interest in the Qua Ibo Marginal Field within Oil Mining Lease 13 ("
OML 13") located onshore
Nigeria, and Oando Reservoir and Production Services Limited, a Nigerian company ("
ORPS" and together with OQI, the "
OQI Companies") (collectively, the "
Acquisition"). Oando currently holds 94.6% of the issued and outstanding common shares of OER. No securities of OER will be issued in relation to the Acquisition and completion of the Acquisition will not result in any changes to the shareholders of OER. The Acquisition is expected to close on or about
April 12, 2013 (the "
Closing Date"), subject to satisfaction of customary closing conditions.
Pade Durotoye, OER's Chief Executive Officer, said "We are very excited about the transfer of this asset to the OER portfolio as we expect that it will significantly increase our resource base and our drive to create additional reserves and ramp up our production. The execution of the work programme for the development of this asset has already commenced and we look forward to it delivering value to us in the short term."
The Qua Ibo Field is located onshore near the mouth of the Qua Ibo River in AkwaIbom state, approximately two kilometres from the Mobil Producing Nigeria Qua Ibo Terminal.