Exploration & Production | Finance & Investing | Debt | Hedging | Capital Markets
Oando Energy Cashes in to Pay Transaction Debt
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Oando Energy Resources Inc. has announced a $238 Million prepayment of certain loan facilities, which it utilized for the $1.5 Billion acquisition of the ConocoPhillips Nigerian Oil and Gas Business in July, 2014.
The company successfully realized $234 Million by resetting its crude oil hedge floor price from an average of $95.35 per barrel to $65.00 per barrel on 10,615 bbls/day for the next 18 months and another 1,553 bbls/day for a further 18 months until January 2019.
The proceeds from the hedge unwind/reset (in addition to $4 Million from cash in hand) were applied to prepay certain loan facilities as detailed below:
1. $188 Million applied to the $415 Million in the Reserves Base Lending facility, resulting in a balance of $227 Million. 2. $51 Million applied to the $338 Million in…Finish this article — free account or subscription
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