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Oando Energy Resources Provides An Update On The Acquisition Of ConocoPhillips Nigerian Business And Amends Loan Agreement With Oando Plc

Stocks in this article: COP

CALGARY, Alberta, November 29, 2013 /PRNewswire/ --

Oando Energy Resources Inc. (" Oando Energy Resources" or the " Company") (TSX: OER), a company focused on oil and gas 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 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 (" POCNL"), Phillips Deepwater Exploration Nigeria Limited (" PDENL") and Conoco Exploration & Production Nigeria Limited (collectively, the " ConocoPhillips Acquisition"), 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:

1. 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 " Outside Date").

2. Increase in the deposit for Phillips Deepwater Exploration Nigeria Limited  

OER will increase the deposit for the acquisition of the shares of PDENL by US$15 million, 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 December 2012, in connection with the ConocoPhillips Acquisition, the Company paid a US$435 million deposit (the " Deposit"). Following the increase in the deposit for PDENL, the aggregate amount of the Deposit for the ConocoPhillips Acquisition will be US$450 million.

As consideration for the extension of the Outside Date, the purchase price of the shares of POCNL will be increased by US$10 million 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 US$1.23 billion (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

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