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TheStreet Open House

Oando Energy Resources Provides An Update On The ConocoPhillips Acquisition

Stock quotes in this article: COP

CALGARY, September 16, 2013 /PRNewswire/ --

Oando Energy Resources Inc. (" OER" or the " Company") (TSX: OER), a company focused on oil exploration and production in Nigeria, today announced that it has:

  • Entered into an amendment agreement with ConocoPhillips (NYSE: COP) in relation to the proposed acquisition by OER of the Nigerian oil and gas business of ConocoPhillips (the " COP Acquisition"); and
  • Terminated the Brass LNG Purchase Agreement.

Execution of amendment agreement in relation to the proposed COP Acquisition

The Company has indirectly entered into an agreement with ConocoPhillips pursuant to which, amongst other things, it extended the outside date for completion of the proposed COP Acquisition from September 19, 2013 to November 30, 2013.

Termination of Brass LNG Purchase Agreement

The Company has agreed with COP to terminate the agreement to purchase the shares of Phillips (Brass) Limited (" PBL"), which holds a 17% shareholding interest in Brass LNG Limited (the " Brass LNG Purchase Agreement"). Brass LNG Limited is developing the Brass LNG Project, a large-scale greenfield project to develop a two-train LNG facility in the Niger Delta. The Company will no longer have an obligation to pay the purchase price pertaining to PBL of approximately US$198.4 million (after giving effect to purchase price adjustments as of the date hereof).

As previously announced, in connection with the COP Acquisition (including the purchase of PBL), the Company paid a US$435 million deposit (the " Deposit"). Of the Deposit, US$35 million was advanced in connection with the Brass LNG Purchase Agreement. This Deposit will be applied by ConocoPhillips to the purchase agreements pertaining to the acquisition of the balance of the ConocoPhillips Nigerian oil and gas business. As a result, the net purchase price payable to complete the acquisition of the remaining assets associated with the COP Acquisition is estimated to be approximately US$1.22 billion (after deducting the Deposit and giving effect to adjustments as of the date hereof).

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