Partnership between CP and Nigerian Oando Energy expands exploration of oil and gas industry. Venture capitalist invest in Africa natural resources. definition: Venture capital can also include managerial and technical expertise. Most venture capital comes from a group of wealthy investors, investment banks and other financial institutions that pool such investments or partnerships. This form of raising capital is popular among new companies or ventures with limited operating history, which cannot raise funds by issuing debt. The downside for entrepreneurs is that venture capitalists usually get a say in company decisions, in addition to a portion of the equity. source: http://www.investopedia.com/terms/v/venturecapital.asp
Nigeria’s oil and gas explorer, Oando Energy Resources (Oando), on Wednesday said it had completed the acquisition of the Nigerian Upstream Oil and Gas Business of ConocoPhillips for $1.5 billion.
Oando believes that the deal is an important break for it to create scale and value for its shareholders.
“This transaction represents a transformational leap forward for our company and is in keeping with our overall strategy to grow our portfolio of Nigerian-based assets by focusing on those opportunities that deliver high quality growth in reserves and production,” said Pade Durotoye, the CEO of Oando Energy Resources.
“Our management team is familiar with these assets and possess the managerial experience and technical expertise necessary to unlock their value for our shareholders,” Durotoye continued.
Wale Tinubu, the chairman of Oando Energy Resources, said the company is prepared to play a critical role in the consolidation of the potential that the Nigerian oil and gas industry holds.
“We will continue to seek strategic opportunities that provide a platform for enhanced growth and value creation for our stakeholders,” Tinubu said.
This comes shortly after Oando Energy Resources, which is listed in Johannesburg and Toronto, said it had completed the $5 million acquisition of oil firm Medal Oil.
“The purchase price of $5,000,000 was satisfied by the issuance of 3,491,082 units, each unit consisting of one common share of the Company and one-half of one warrant to purchase an additional common share at a price of C$ 2.00 per common share for a period of 24 months from the date on which the Company closes the acquisition of the Nigerian upstream oil and gas business of ConocoPhillips the (CoP),” Oando said at the time.
Oando Energy Resources is the new trading name of Exile Resources Inc (Exile) after the acquisition of certain shareholding interests in Oando PLC’s upstream subsidiary.