By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Oando Energy Resources (OER) on Monday announced it has completed the acquisition of Medal Oil.

This is contained in Statement dated July 11, 2014 and posted on its official website.

OER said the purchase price of $5,000,000 was satisfied by the issuance of 3,491,082 units, each unit consisting of one common share of the company and one-half of one warrant to purchase an additional common share at a price of C$ 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 the (“CoP Acquisition”).

According to the oil and gas exploration and production firm in Nigeria, Medal Oil holds a five percent (5%) interest in OML 131. ‘’Upon completion of the CoP Acquisition, OER will own a 100% interest in OML 131,’’ the Statement said.

This is coming on the heels of Oando Plc increasing its stake by 1.6 percent to 93.7 percent in its Toronto-listed unit Oando Energy Resources (OER).

Oando said to increase its stake in OER, it converted a $218.9 million loan to the subsidiary into equity.

As earlier reported, the oil marketing company said the debt is part of a $1.2 billion facility Oando granted OER in February to help finance the acquisition of ConocoPhillips.

In the deal, Oando Energy Resources converted the debt to equity at C$1.57 per unit and issued 150 million units to its parent company Oando Plc. It said each unit consists of one share of OER and half a warrant to buy an extra share at a price of C$2 per share.