HOUSTON (dpa-AFX) - Oando Energy Resources Inc. (OER.TO), a company focused on oil and gas exploration and production in Nigeria, has closed its acquisition of the Nigerian Upstream Oil and Gas Business of ConocoPhillips (COP) for $1.5 billion in cash, after customary adjustments plus a deferred consideration of $33 million.
The transaction encompasses the acquisition of ConocoPhillips' Nigerian oil and gas businesses comprising the onshore and offshore business. With the help of this transaction, OER would indirectly own all of the issued share capital of POCNL, CEPNL and PDENL. The effective date of the transaction is January 1, 2012.
The transaction was financed with an approximate 50/50 debt-equity ratio. Half of the deferred consideration of $33 million is due six months after closing with the balance due 12 months after closing. This purchase is immediately cash generative and would significantly contribute to the company's cashflows.
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