Oando Energy Resources Secures Medal Oil Company Ltd in $5m Deal

By Kgothatso Kage Kgiba

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".



Featured Articles

Top 10 most innovative telecom operators in the Middle East

With Dubai-based Telecoms World Middle East in full swing, we chart the most innovative telcos from the region – and look at how they are transforming

Top 10 fastest-growing Indian companies in the UK

Business Chief takes a look at the top 10 fastest-growing Indian companies in the UK, according to the India Meets Britain Tracker from Grant Thornton

Top 10 workplaces prioritising people and planet in the UAE

Sustainable, flexible, collaborative, tech-driven, and amenities-rich, the office of the future considers both people and planet – here are 10 in the UAE

Top 10 female HR execs leading Saudi’s workplace transition

Leadership & Strategy

Top 10 largest asset managers by AUM operating in the UAE

Corporate Finance

Top 10 female CEOs leading Africa’s biggest businesses

Leadership & Strategy