Oando Energy Resources Inc. has, subject to, amongst other things, TSX approval, secured funding for the closure of the acquisition of the Nigerian Upstream Oil and Gas Business of ConocoPhillips (the "ConocoPhillipsAcquisition").
The Company currently estimates that the net purchase price payable to complete the ConocoPhillips Acquisition will be approximately US$1.05 billion (after deducting payment of the US$450 million deposit previously paid, an additional US$50 million to be paid and giving effect to expected adjustments as of the Outside Date) ("Net Purchase Price"). Oando Energy Resources expects to fund payment of the Net Purchase Price using:
i. funds from the corporate facility and reserve-based loan agreement with third party lenders, as announced today [January 31, 2014];
ii. proceeds from the proposed private placement of units of the Company, subject to approval by the Toronto Stock Exchange ("TSX"), as announced on January 28, 2014; and
iii. a convertible loan from Oando Plc, the 94.6% shareholder of the Company, subject to, amongst other things, TSX approval.