Oando Energy Resources Inc. (OER), a company focused on oil exploration and production in Nigeria, said it had signed binding documentation with Oando Plc, to indirectly acquire, from Oando, equity interests in Oando Qua Ibo Limited (OQI), a Nigerian company established to hold a 40 percent participating interest in the Qua Ibo Marginal Field within Oil Mining Lease (OML 13) located onshore Nigeria, and Oando Reservoir and Production Services Limited, a Nigerian company.
Oando currently holds 94.6 percent of the issued and outstanding common shares of OER. No securities of OER will be issued in relation to the acquisition and completion of the acquisition will not result in any changes to the shareholders of OER.
The acquisition is expected to close on or about April 12, 2013, subject to satisfaction of customary closing conditions, the company said.
Read also: Eunisell records significant leap on Qua Iboe Field
Pade Durotoye, OER’s Chief Executive Officer, said in a statement on Wednesday: “We are very excited about the transfer of this asset to the OER portfolio as we expect that it will significantly increase our resource base and our drive to create additional reserves and ramp up our production. The execution of the work programme for the development of this asset has already commenced and we look forward to it delivering value to us in the short term.”
The Qua Ibo Field is located onshore near the bank of the Qua Ibo River in Akwa Ibom state, approximately two kilometres from the Mobil Producing Nigeria Qua Ibo Terminal.
In February 2012, OQI signed a farm-in agreement to acquire a 40 percent participating interest in the Qua Ibo Field from Network Exploration & Production Nigeria Limited (NEPN), a Nigerian company.
The field was awarded to NEPN as part of the 2003 marginal field bid round.
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