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Oando Energy Resources Receives Signed Commitment Letters For Up To US$815 Million Of Term Bank Financing Towards The Acquisition Of ConocoPhillips' Nigerian Upstream Oil And Gas Business

CALGARY, Alberta, October 10, 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 received commitment letters for up to US$815 million of bank credit facilities which will be largely applied towards payment of the purchase price in respect of its proposed acquisition of ConocoPhillips' (" COP") Nigerian upstream oil and gas business (the " COP Acquisition").

The credit facilities comprise:
  1. up to US$465 million Reserve Based Lending Facility, internationally placed and led by BNP Paribas, Standard Bank and Standard Chartered Bank (" RBL"); and
  2. a US$350 million Senior Secured Loan, jointly arranged locally in Nigeria, by FBN Capital and FCMB Capital Markets (" Senior Loan").

OER, in its September 16, 2013 press release, advised the market of the extension of the outside date for the completion of the COP Acquisition to November 30, 2013 (" Outside Date"). As a result of the termination of the agreement to purchase Phillips Brass Limited ("PBL") the net purchase price payable to complete the COP Acquisition was reduced to approximately US$1.22 billion (after giving effect to the termination of the agreement to purchase PBL, adjustments as of the date hereof and the deposit already paid to COP).

The RBL and Senior Loan remain subject to various closing conditions, including execution of definitive documentation.

"The receipt of the commitment letters represents an important step towards closing the COP Acquisition and concludes the 2 nd stage in our financing plan, having initially paid a US$435 million deposit to COP," said PadeDurotoye, CEO of Oando Energy Resources. "We have sought to optimally finance this acquisition to retain maximum value for our shareholders. We will now proceed to the final stage of concluding the financing required for completion of the COP Acquisition."

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