Oando Energy Resources Inc. (“Oando Energy Resources” or the “Company”) (TSX: OER), has announced that, further to its press releases dated December 20, 2012, September 16, 2013, November 28, 2013, January 31, 2014, and March 3, 2014, the outside date for completion of the proposed acquisition of the Nigerian Upstream Oil and Gas Business of ConocoPhillips (NYSE: COP) (the “ConocoPhillips Acquisition”) has been extended to April 30, 2014.

Pursuant to an amendment agreement executed on March 27 2014, Oando Energy Resources and ConocoPhillips agreed to extend the outside date for completion of the ConocoPhillips Acquisition from March 31, 2014 to April 30, 2014 to enable the companies to satisfy all closing conditions including the anticipated consent of the Honourable Minister of Petroleum Resources in Nigeria.

In consideration of this extension OER has consented to increasing its deposit by $25 million on April 17, 2014, if the consent of the Honourable Minister of Petroleum Resources is not received on or before April 11, 2014.

Once concluded, the ConocoPhillips transaction will substantially boost the operations of Oando Energy Resources’ (OER), the upstream business of Oando Plc, with production of about 50,000 boepd post acquisition, generating extensive growth in revenue and profitability.

Oando had paid an initial deposit of $450 million, and has received additional funds through debt commitment letters received from financial institutions ($815 million), private placement of shares ($200 million), and the recent sale of its EHGC asset to Seven Energy for $250 million.

Additionally, the acquisition will immediately position OER as one of the largest indigenous oil producer in Nigeria, as the company will also grow its 2P reserves and 2C resources by 221MMboe and 492MMboe respectively.

Oando had revenues of N386.25 billion in the nine month period to September 2013 and a market capitalization of $899.3 million as at March 28.

The acquisition comprises the indirect acquisition of all of the shares of Phillips Oil Company Nigeria Limited, Phillips Deepwater Exploration Nigeria Limited and Conoco Exploration and Production Nigeria Limited.

Source: Businessday