As the outside date for Nigeria-focused oil and gas explorer Oando Energy Resources’ (OER’s) long-awaited and much delayed $1.65-billion takeover of New York-listed ConocoPhillips’ Nigerian upstream oil and gas business nears, OER has also completed the $5-million acquisition of Medal Oil.
To satisfy the Medal Oil acquisition, OER issued 3.49-million units, each comprising one common share and one-half of one warrant to buy an additional common share at a price of C$2 apiece.
Upon completion of the acquisition of the ConocoPhillips unit by July 31, OER, which was listed in Lagos, Toronto and Johannesburg, would own a 100% interest in OML 131 offshore Nigeria.
OML 131 is a large deep-water offshore block located in a prolific area about 70 km south of the Niger Delta coastline and covering 1 204 km2 at water depths ranging between 500 m and 1 200 m.
OML 131 has two oil and gas discoveries and six large untested prospects. It is expected that the Chota field in OML 131 will be unitised with the Bolia field in OML 135, which is operated by Shell.
Conoco Exploration and Production Nigeria currently held a 95% operating interest in OML 131, with Medal Oil holding the other 5%.