CALGARY, Alberta, August 13, 2013 /PRNewswire/ --
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Oando Energy Resources Inc. ("OER") has filed a preliminary short form base shelf prospectus with the securities regulators in each province of Canada, except for the Province of Quebec. This filing, when made final, will allow OER to make offerings of common shares and subscription receipts or a combination thereof of up to US$ 550 million during the next 25 months in each province in Canada, except for the Province of Quebec. The net proceeds from any such offerings may be used by OER to pay a portion of the purchase price payable by OER to ConocoPhillips in connection with the acquisition by OER of the Nigerian oil and gas assets of ConocoPhillips (the "Acquisition") and for general corporate purposes or as may be otherwise specified in a prospectus supplement.
OER has filed this preliminary base shelf prospectus to maintain financial flexibility in its financing to pay the purchase price under the Acquisition. These is no certainty that any offering of securities will occur under the final short form base shelf prospectus or if one does occur the amount that will be raised in connection with any such offering.
A copy of this preliminary base shelf prospectus will be available on SEDAR (http://www.sedar.com)
ABOUT OANDO ENERGY RESOURCES
OER currently has a broad suite of producing, development and exploration properties in the Gulf of Guinea (predominantly in Nigeria) with current production (excluding the assets to be acquired in connection with the Acquisition) of approximately 5,100 bopd from the Abo Field in OML 125 and the Ebendo Field in OML 56. OER has been specifically structured to take advantage of current opportunities for indigenous companies in Nigeria, which currently has the largest population in Africa, and one of the largest oil and gas resources in Africa.
Forward Looking Statements:
This news release contains forward-looking statements and forward-looking information, including with respect to the financing of the Acquisition, within the meaning of applicable securities laws. The use of any of the words "expect, "anticipate, "continue, "estimate, "objective, "ongoing", "may, "will, "project, "should, "believe, "plans, "intends" and similar expressions are intended to identify forward-looking information or statements.
Although OER believes that the expectations and assumptions on which such forward-looking statements and information are reasonable, undue reliance should not be placed on the forward-looking statements and information because OER can give no assurance that such statements and information will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to: risks related to the Acquisition, risks related to funding the remainder of the purchase price for the Acquisition or funding the remainder of the purchase price for the Acquisition on attractive terms, risks related to oil and gas recovery, risks related to receipt of all required, risks relating to loss of the deposit, risks relating to satisfaction of all conditions precedent to closing of the Acquisition and all related financings, the actual results of exploration and drilling activities, changes in oil and gas production, changes in project parameters and timing as plans continue to be refined and the future price of crude oil and natural gas. Accordingly, readers should not place undue reliance on the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive.
Additional information on these and other factors that could affect OER's financial results are included in the Prospectus and the reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (http://www.sedar.com) for OER. The forward-looking statements and information contained in this news release are made as of the date hereof and OER undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Production information is commonly reported in units of barrel of oil equivalent ("boe" or "BOE") or in units of natural gas equivalent ("Mcfe"). However, BOEs or Mcfes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 barrel, or an Mcfe conversion ratio of 1 barrel:6 Mcf, is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
There is no certainty that it will be commercially viable to produce any portion of the contingent resources.
There is no certainty that any portion of the prospective resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
For further information:
Pade Durotoye, CEO
Oando Energy Resources Inc.
Head Investor Relations
Oando Energy Resources Inc.