oando

[dr.abrahamb]

Originally Posted by wanaj0

OandO will own 78% after converting $400m loan or thereabout into shares! So how much is OandO owning now? Who are the other major shareholders? How much did they pay? Why is OandO converting at $1.59 per share? Why is OandO plc the one getting and guaranteeing the loan for this transaction?

Interesting days ahead!

Merry Christmas Oga mi. How interesting? Vetiva undertaking(sorry, underwriting) the deal? Abi aggrieved shareholders dragging the company before the whole world? Or na real life?

[bivins1]

Abracadabra oando is going to turn a lot of canadians into paupers. the hocus pocus have just started and by the time they are done with, dem go understand say Nigeria no dey carry last . the stock just spiked 11% on announcement of the conoco deal and they are pramaturely ejaculating. By the time Oando is done with them, they would wish they never touched that stock.

Oando Energy Resources Inc., t.oer.

Oando Energy Resources Inc., OER - Bullboard

[hispy99]

Originally Posted by bivins1

Abracadabra oando is going to turn a lot of canadians into paupers. the hocus pocus have just started and by the time they are done with, dem go understand say Nigeria no dey carry last . the stock just spiked 11% on announcement of the conoco deal and they are pramaturely ejaculating. By the time Oando is done with them, they would wish they never touched that stock.

Oando Energy Resources Inc., t.oer.

Oando Energy Resources Inc., OER - Bullboard

bros, how many times u go warn these people? abeg make u leave dem alone o, make dem no abuse u when the stock hits $3.50

[bivins1]

Originally Posted by hispy99

bros, how many times u go warn these people? abeg make u leave dem alone o, make dem no abuse u when the stock hits $3.50

True talk my brother. Merry Xmas to you and family

[hispy99]

Originally Posted by Salida

This deal can either make or mar this company. Only time will tell.

High Points

1. The Company has paid a $435 MM cash deposit to Conoco, financed by a $345 MM loan from the Company’s parent, Oando Plc, as well as a $90 MM loan funded through secured bridge loans guaranteed by Oando Plc. The $345 MM loan from the parent has a 120-day term, an annual interest rate of LIBOR plus 10.5% and is convertible into company shares at the lower of the 5-day VWAP from December 20 and the 5-day VWAP preceding the day that Oando Plc gives notice that it wishes to convert the loan into company shares.

Q: Was the loan from Ocean and Oil or Oando PLC ?

2. In addition to the $435 MM deposit paid upon signing, the Company expects the remainder of the purchase price to be funded through equity and debt, including private placements of equity-linked securities, a follow-on offering of company shares and $800 MM of senior secured loans that are
expected to be provided by a syndicate of international and Nigerian banks.
Management will target a 50/50 debt to equity split for the acquisition over time, dependent on market conditions.

Q: How prepared is Oando for this escalating debt profile if Sir KOD and his boys decide to resume hostilities in the creeks and/or the global oil prices suddenly plunge to record low prices?
Please when the loans are secured, make we know the Nigerian banks involved.

I listened to the recorded conference call......If you are interested in listening dial 1-855-859-2056 (North America) or 1-416-849-0833 (International) with the reservation number 83403657#. The call will be available through December 28, 2012.

To answer your questions:
1) uncle Wale said it's OANDO Plc, but these guys love convertible shares sha
2) Uncle Wale refused to name the consortium of international banks involved in the $800 million when he was asked, but he told the person that asked the question to be "rest assured that the funding has been structured and they are extremely confident of concluding the transaction"

Other points:
1) there is going to be a further capital raising on TSX, exact amount to be raised not yet determined.
2) The assets acquired generate approx $300 million gross a year, with estimated capex of $100 million, free cash flow = $200 million

[wanaj0]

Originally Posted by Salida

Merry Christmas Sir Dr.abrahamb. AMCON needs to tighten their belt too.



Sir Wanaj0, this your post is loaded o but make we try to distinguish OandO and Oando cos some people might be confused.

Have you got your units in OandO now ?

My brother, the thing funny no be small!

I see them talking about production/revenues without accounting for natural decline which can be as high as 12%!

True we need to know which O and O we are talking about here. I see Ocean and Oil taking the people to cleaners. That magomago listing (reverse acquisition) on the TSE get as e be! No one is sure again of who owns what.

[wanaj0]

We have assumed a May 1, 2013, closing with a cash purchase price of $1.41 billion (after
adjustments) financed by: (1) $800 MM of senior debt, (2) $90 MM in Oando Plc guaranteed lending,
and (3) equity. We have assumed that Oando Plc’s loan to the company will be converted in its
entirety to stock of the company at the current price of C$1.59 per share while a follow-on offering of
common stock will total 100 MM shares at the current price of C$1.50 per share (less commission).
This would leave Oando Plc with ~78% of the company’s ~423 MM pro forma common shares
outstanding.

Some abracadabra going on here.

OandOPLC is supposed to own about 94.6% as at October 2012

OER Investor Presentation

OandO PLC with its $435m exposure when converted to shares will have its holding REDUCED to 78%. This is supposed to be BECAUSE of some NEW equity raising of 100m shares at $1.50 ($150m).

Can someone explain the mathematics by which OandO PLC's 95% holding plus $435m led to a reduction in shareholding to 78% just because someone contributed $150m??? How to you pay $435m and have reduction in shareholding and someone pay $150m and get 20%?????

I bow ooooo.

[duduspace]

Originally Posted by wanaj0

Some abracadabra going on here.

OandOPLC is supposed to own about 94.6% as at October 2012

OER Investor Presentation

OandO PLC with its $435m exposure when converted to shares will have its holding REDUCED to 78%. This is supposed to be BECAUSE of some NEW equity raising of 100m shares at $1.50 ($150m).

Can someone explain the mathematics by which OandO PLC's 95% holding plus $435m led to a reduction in shareholding to 78% just because someone contributed $150m??? How to you pay $435m and have reduction in shareholding and someone pay $150m and get 20%?????

I bow ooooo.

Oga Wanaj, I will speak for Oando here, not holding brief for them as they are as corrupt as they come but I recall there are some outstanding options for the incumbent shareholders of the company that was taken over in reverse and the dodgy one for the management (bigwigs) of Oando (spelt OandO Holdings), one is excercisable till 2013 and the other till 2014 I think.
I've not done the maths but after its all done, Oando PLC (we, the exploited common people) shareholding in OER should be about the stated figure.

[wanaj0]

Originally Posted by duduspace

Oga Wanaj, I will speak for Oando here, not holding brief for them as they are as corrupt as they come but I recall there are some outstanding options for the incumbent shareholders of the company that was taken over in reverse and the dodgy one for the management (bigwigs) of Oando (spelt OandO Holdings), one is excercisable till 2013 and the other till 2014 I think.
I've not done the maths but after its all done, Oando PLC (we, the exploited common people) shareholding in OER should be about the stated figure.

Thanks. What are these outstanding options? How much is it worth? Their presentation showed that as at October 2012, OandO plc own 95%! Reducing that to 78% after contributing another $435m get as e be!

[hispy99]

Originally Posted by duduspace

Oga Wanaj, I will speak for Oando here, not holding brief for them as they are as corrupt as they come but I recall there are some outstanding options for the incumbent shareholders of the company that was taken over in reverse and the dodgy one for the management (bigwigs) of Oando (spelt OandO Holdings), one is excercisable till 2013 and the other till 2014 I think.
I've not done the maths but after its all done, Oando PLC (we, the exploited common people) shareholding in OER should be about the stated figure.

Originally Posted by wanaj0

Thanks. What are these outstanding options? How much is it worth? Their presentation showed that as at October 2012, OandO plc own 95%! Reducing that to 78% after contributing another $435m get as e be!

I got the excerpt below from page 6 http://www.stonecapsecurities.com/PD...1082012%29.pdf

OER currently has 106.0 million shares outstanding. There are 8.8 million options outstanding with an exercise price of $1.04. Also, there are 11.4 million warrants outstanding (5.7 with an exercise price of $1.50 expiring in July 2013, 5.7 with an exercise price of $2.00 expiring in July 2014) Oando plc currently holds ~95% of the outstanding shares. OER currently has a small market float.

So there are 20.2 million shares that could be added to OER's 106 million shares. I believe the warrants are owned by the former shareholders of Exile. The 8.8 million options were granted to the executives of OER (see Note 12 (c) ). http://www.oandoenergyresources.com/...ials.do-01.pdf

So Uncle Wale and co own 7% of fully diluted shares of OER. How did this happen sef? They used OANDO's money to buy Exile and then "dashed" themselves 7% via executive options? How did the shareholders of OANDO approve this "gift"?.

Also 2 million RSU's were granted to the CEO on July 24, 2012 under the following guidelines:

1/3 of the Restricted Share Units will vest on the first anniversary date of the Effective Date provided that the closing price on the TSX of the Exile post-Consolidation Shares, during any consecutive five (5) trading day period during the year between the Effective Date and the first anniversary thereof, exceeds Cdn$1.50; 1/3 of the Restricted Share Units will vest on the second anniversary date of the Effective Date provided that the closing price on the TSX of the Exile post-Consolidation Shares, during any consecutive five (5) trading day period during the year between the first anniversary date of the Effective Date and the second anniversary thereof, exceeds Cdn$2.50; and all of the Restricted Share Units not already vested will vest on the third anniversary date of the Effective Date provided that the closing price on the TSX of the Exile post-Consolidation Shares, during any consecutive five (5) trading day period during the year between the second anniversary date of the Effective Date and the third anniversary thereof, exceeds Cdn$3.50. A charge of US$0.1 million has been recognized in the income statement for the RSU.

Anyway, the CEO will collect the first 1/3 of the RSUs as the share price has crossed the $1.50 mark. OER's shares are illiquid, don't be surprised if he collects the remaining RSUs given this vesting schedule.


OANDO owns 95% of 106 million shares = 100.7 million shares. By the time you use the fully diluted (including warrants and options but excluding RSU), OANDO's percentage comes to 79% before the new $435 million shares are converted. If OANDO converts it's $435million loan @C$1.59, it will mean that 273 million new shares will be issued to OANDO giving it a total of 373 million. The Cormark Report says OANDO will have 423 million shares after the conversion, so my calculation shows a shortfall of 50 million shares.

Using my calculation, OANDO's % holding should be 373/(106+20.2 + 273 + 100) = 74.7%. If I add the 50 million shares shortfall to the numerator and denominator, I come up with about 77%, which is close to the 78% mentioned in the report.

[dr.abrahamb]

Originally Posted by hispy99

I listened to the recorded conference call......If you are interested in listening dial 1-855-859-2056 (North America) or 1-416-849-0833 (International) with the reservation number 83403657#. The call will be available through December 28, 2012.

To answer your questions:
1) uncle Wale said it's OANDO Plc, but these guys love convertible shares sha
2) Uncle Wale refused to name the consortium of international banks involved in the $800 million when he was asked, but he told the person that asked the question to be "rest assured that the funding has been structured and they are extremely confident of concluding the transaction"

Other points:
1) there is going to be a further capital raising on TSX, exact amount to be raised not yet determined.
2) The assets acquired generate approx $300 million gross a year, with estimated capex of $100 million, free cash flow = $200 million

Sounds very juicy. How much did they price the oil? What are their assumptions about the international oil market when the US starts massive production? Or are they banking on generating this revenue from refined products? Perhaps very soon they will come and tell us they need to raise capital to acquire refineries.

[hispy99]

Originally Posted by dr.abrahamb

Sounds very juicy. How much did they price the oil? What are their assumptions about the international oil market when the US starts massive production? Or are they banking on generating this revenue from refined products? Perhaps very soon they will come and tell us they need to raise capital to acquire refineries.

I think I heard ~ $4/barrel in the call o...but don't quote me. I don't know if $4 makes sense

[wanaj0]

Hispy, thanks. Now the arithmetic is clear. Pade is still the CEO? they can continue to dash themselves money lol.

As per the $300m revenue, the $100m is Opex. Not sure they factored in the Capex or even the natural decline of any field. Don't think they know what they are calculating!

Wishing the shareholders the best of luck!

[hispy99]

Originally Posted by wanaj0

Hispy, thanks. Now the arithmetic is clear. Pade is still the CEO? they can continue to dash themselves money lol.

As per the $300m revenue, the $100m is Opex. Not sure they factored in the Capex or even the natural decline of any field. Don't think they know what they are calculating!

Wishing the shareholders the best of luck!

Do you have an idea of how much companies pay for reserves? I believe I heard them say $4/barrel

[wanaj0]

Originally Posted by hispy99

Do you have an idea of how much companies pay for reserves? I believe I heard them say $4/barrel

It varies. The divestments done recently by SPDC has an implied value ranging between $4.60/bbl and $8.10/bbl of 2P reserves.

Other things come into the valuation.

[horlads]

This OandO guys na Baba....dem don teach me a new term today...Restricted Share Units...

[wanaj0]

Originally Posted by horlads

This OandO guys na Baba....dem don teach me a new term today...Restricted Share Units...

How can one buy Ocean and Oil shares? That is the place to be lol

[horlads]

Originally Posted by wanaj0

How can one buy Ocean and Oil shares? That is the place to be lol

I actually believe OER's shares listed on the TSX will do well....cos of the embedded options. The options are useless if they don't...

[hispy99]

Originally Posted by horlads

I actually believe OER's shares listed on the TSX will do well....cos of the embedded options. The options are useless if they don't...

Yes, I believe so myself and the shares are so illiquid that just a little bit of trading would get the job done. The CEO also has a lot at stake. He can only get another 1/3 or 2million if price crosses Cnd$2.5 and the remaining 1/3 if it crosses Cnd$3.50. So what do you think will happen?

[hispy99]

Originally Posted by wanaj0

How can one buy Ocean and Oil shares? That is the place to be lol

Uncle Wale might just sell you Class Z shares that only give you access to the corporate building and nothing else