Yemisi Izuora/Ijeoma Agudosi
Oando Energy Resources Inc with focus on oil and gas exploration and production in Nigeria has announce a $91 Million upsizing of its senior secured facility (the “RBL Upsize”) from $215 Million to $306 Million.
The company also announced the repayment of its $100 Million African Export-Import Bank subordinated loan facility , which were utilized 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 proceeds from the Upsize, along with cash on hand, were used to repay the $100 Million Afrexim Facility.
Following the completion of these transactions, OER has total debt outstanding of $546 Million.
The breakdown include, $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 of October 26, 2015, down 44 percent from $900 Million outstanding at the completion of the ConocoPhillips Acquisition in July 2014.
Commenting, Pade Durotoye, CEO Oando Energy Resources 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. OER remains focused on its financial and operational goals of strengthening its Balance Sheet and maintaining stable production levels through production optimization in these times of reduced oil prices and limited capital investment.”
OER currently has a broad suite of producing, development and exploration assets in the Gulf of Guinea (predominantly in Nigeria). Average production for OER in the third quarter of 2015 was 53,169 boe/d.
