17 July 2014, Lagos – Energy Resources Inc., a company focused on oil and gas exploration and production in Nigeria, has announced the completion of the acquisition of Medal Oil Company Limited for $5 million, (about N800 million).
According to a statement from the company, “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.
Medal Oil holds a 5 per cent interest in Oil Mining Licence (OML 131). Upon completion of the CoP Acquisition, Oando will own a 100 per cent interest in OML 131, according to the statement.
Oando had recently reached an aggreement on complete acquisition of the upstream oil and gas business of ConocoPhillips in Nigeria, after scalling through the hurdle of getting ministerial concent.
The Head Corporate Communications, Oando, Ainoije Alex Irune, earlier said the parties have extended the completion date for the acquisition to July 31, 2014.
He stated: “Having received the consent of the Minister of Petroleum Resources, both parties have extended the outside closing date for completion of the acquisition to enable them finalise activities required to conclude the transaction.”