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Oando Energy Resources Announces Third Quarter Results

Extension of the outside date for the proposed COP Acquisition

On September 13, 2013, the Company entered into an amendment agreement with COP pursuant to which, among other things, it extended the outside date for completion of the COP Acquisition from September 19, 2013 to November 30, 2013.

Termination of Brass LNG Purchase Agreement

On September 13, 2013, the Company terminated the Brass LNG Purchase Agreement. The Company will no longer have an obligation to fund the purchase price pertaining to PBL of $140 million (approximately $198.4 million after giving effect to purchase price adjustments as of the date hereof).

The $35 million deposit paid in respect of the Brass LNG Purchase Agreement has been applied to the purchase of the remaining assets associated with the COP Acquisition. As a result, the net purchase price for the COP Acquisition is estimated to be approximately $1.65 billion (after giving effect to adjustments as of the date hereof). The balance to pay after deducting the Deposit is estimated to be approximately $1.2 billion.

Financing

On October 10, 2013, the Company announced that it had received commitment letters for up to $815 million of bank credit facilities, which will be largely applied towards payment of the purchase price in respect of the COP Acquisition.

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

The commitments described above remain subject to, among other closing conditions, the banks' final approval and execution of definitive documentation.

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