Oando Energy Resources Inc. (“OER” or the “Company”) , a company focused on oil exploration and production in Nigeria, today announced that it had entered into a loan agreement (“LoanAgreement”) with Oando Plc (“Oando”) to refinance and supplement the loan extended by Oando to OER on December 20, 2012. OER and Oando also executed a deed of repayment (“Repayment Deed”) permitting OER to repay amounts owing under the Loan Agreement by the issuance of common shares of OER. Oando owns 94.6% of the common shares of OER (“Shares”), on a non-diluted basis.
“This refinancing of our original loan from Oando Plc underscores the strong financial backing and ongoing support that OER continues to receive from its majority shareholder,” said Pade Durotoye, CEO of Oando Energy Resources. “The financial flexibility afforded to us by this relationship is a key differentiator for OER, as it provides our young company with the stability and means to pursue an ambitious growth agenda within Nigeria.”