| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers O > Headlines for Oando Energy Resources Inc. > News item |
Oando Energy prepays $238 million loan facilities used for acquisition
By Susanna Moon
Chicago, March 3 – Oando Energy Resources Inc. said it prepaid $238 million of loan facilities, which it used for the $1.5 billion acquisition of the ConocoPhillips Nigerian oil and gas business in July 2014.
The company applied $188 million to the $415 million in the reserves base lending facility, resulting in a balance of $227 million, according to a company press release.
The company also applied $51 million to the $338 million in the corporate facility, resulting in a balance of $287 million.
The company said it realized $234 million by resetting its crude oil hedge floor price. The proceeds from the hedge unwind/reset, in addition to $4 million from cash in hand, were applied to prepay the loan facilities.
"The decline in global crude oil prices led to a substantial gain for our company, and we have 10,832 bbls/day average production hedged for the balance of 2015 and 8,000 bbls/day for 2016," Pade Durotoye, Oando’a chief executive officer, said in the press release.
"Cashing out some value from this hedge will enable us reduce our outstanding loans and leverage by $238 million, saving the company $65 million in interest payments over the remaining term of the loan facilities, whilst preserving a floor of $65 per barrel.
“With 50% of our oil production hedged and 65% of our production being gas committed to stable long-term priced contracts, we are well positioned with strong cash flow to meet our obligations and aspirations through this current oil price down cycle."
Oando, formerly Exile Resources Inc., is an oil and gas exploration company based in Calgary, Alta.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.