Oando Energy Resources Secures Medal Oil Company Ltd in $5m Deal
A leading Nigerian oil and gas exploration and production company, Oando Energy Resources Inc (OER) has announced a $5million takeover deal of the Medal Oil Company Ltd.
The deal ties in neatly with Oando’s acquisition of ConocoPhillips’ Nigerian upstream oil and gas business as the Medal Oil Company Ltd holds a five per cent interest in Oil Mining Licence (OML 131).
Upon completion of the ConocoPhillips acquisition scheduled for July 31, Oando will own 100 percent interest in the OML 131.
According to a company statement the $5m purchase price was satisfied by the issuance of 3,491,082 units, each unit consisting of one common share of the company and one-half of one warrant to purchase an additional common share at a price of C$ 2.00 per common share for a period of 24 months from the date on which the company closes the acquisition of the Nigerian upstream oil and gas business of ConocoPhillips.
Last month OER announced it had received consent from Nigeria’s Minister of Petroleum Resources for its acquisition of ConocoPhillips’s Nigerian upstream business for a total cash consideration of $1.65 billion.
At that time OER Chairman Wale Tinubu said: "We are delighted to receive the approval of the Honourable Minister of Petroleum Resources for the completion of the acquisition.
“It has been a long journey, wherein we kept faith with our strategy and executed every milestone diligently.
“This acquisition satisfies our criteria for assets in production, as well as excellent appraisal and exploration prospects. The coast now stands clear for us to immediately complete the acquisition".