By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-Oando Energy Resources (OER) announced on Thursday a $91 million upsizing of its seniour secured facility RBL Upsize from $215 million to $306 million, and the repayment of its $100 million African Export-Import Bank subordinated loan facility (AFREXIM) which were utilised in the financing of the $1.5 billion acquisition of the ConocoPhillips Nigerian Oil and Gas Business in July, 2014.

“The $91 Million RBL Upsize was arranged by Standard Chartered Bank and African Export-Import Bank (“Afrexim”) as Mandated Lead Arrangers (“MLAs”) with participation from Standard Bank of South Africa Limited, Stanbic IBTC Bank Plc and Natixis,” the oil/gas exploration and production company said in a statement.

According to OER, the proceeds from the Upsize, along with cash on hand, were used to repay the $100 million Afrexim facility.

OER affirmed that following the completion of these transactions, it has total debt outstanding of $546 million, comprised of $306 million outstanding under its RBL facility; and $240 million outstanding under its corporate facility.

“Combined with cash on hand, OER’s net debt position is $500 million as at October 26, 2015, down 44 percent from $900 million outstanding at the completion of the ConocoPhillips Acquisition in July 2014,” the oil/gas exploration and production firm added.

Pade Durotoye, CEO at OER said: “The upsizing of the RBL loan is a true testament to the quality of the assets we acquired in July 2014. The cashflows from these assets have continued to pay down the Company’s post acquisition debt with the assistance of the value realized from the resetting of our hedge instruments, leaving a debt equity ratio of 0.57 today, compared with 0.91 in July, 2014.

He added that OER remains focused on its financial and operational goals of strengthening its Balance Sheet and maintaining stable production levels through production optimisation in these times of reduced oil prices and limited capital investment.”