November 29, 2013
Oando Energy Resources Inc. ("
Oando Energy Resources
" or the "
") (TSX: OER), a company focused on oil and gas exploration and production in
, today announced that it has entered into an amendment agreement with ConocoPhillips (NYSE:
) in relation to the proposed acquisition by the Company of the Nigerian upstream oil and gas business of ConocoPhillips, comprising the indirect acquisition of all of the shares of Phillips Oil Company Nigeria Limited ("
"), Phillips Deepwater Exploration Nigeria Limited ("
") and Conoco Exploration & Production Nigeria Limited (collectively, the "
"), as previously announced on
December 20, 2013
and September 16, 2013. Pursuant to the amendment agreement, Oando Energy Resources and ConocoPhillips agreed, amongst other things, to the following amendments:
Extension of Outside Date for Completion of the ConocoPhillips Acquisition
The outside date for completion of the ConocoPhillips Acquisition has been extended from
November 30, 2013
to January 31, 2014 (the "
Increase in the deposit for Phillips Deepwater Exploration Nigeria Limited
OER will increase the deposit for the acquisition of the shares of PDENL by
, and has agreed to pay the increased deposit amount to ConocoPhillips by no later than December 6, 2013. No change to the purchase price of PDENL results from this amendment. As previously announced in
, in connection with the ConocoPhillips Acquisition, the Company paid a
deposit (the "
"). Following the increase in the deposit for PDENL, the aggregate amount of the Deposit for the ConocoPhillips Acquisition will be
As consideration for the extension of the Outside Date, the purchase price of the shares of POCNL will be increased by
per month for the period from
December 1, 2013
up to but excluding the Outside Date of
January 31, 2014
and will be calculated on a pro rata basis where the completion date of the ConocoPhillips Acquisition does not occur on the last day of the month. Any increase in the purchase price as a result of this consideration will be an adjustment to the net purchase price payable at completion of the ConocoPhillips Acquisition.
As a result of the amendments referred to above, the net purchase price payable to complete the ConocoPhillips Acquisition is estimated to be approximately
(after deducting the Deposit (including the increase referred to above) and giving effect to adjustments as of the Outside Date).
Amendment to Loan Agreement with Oando