Optimum Inks a Multimillion Dollar Financing Term Sheet With Milost
- Created: Tuesday, 07 November 2017 23:34
- Written by Nasdaq GlobeNewswire
NIGERIA, Lagos, Nov. 07, 2017 (GLOBE NEWSWIRE) -- Optimum Petroleum Development Ltd, a Nigerian based exploration, development and production company, announced today that it has signed a financing term sheet of USD$850 million with Milost Global Inc, a New York based Private Equity Firm. This is a working capital and development facility for the company which is being provided as a combo of Debt and Equity, of which $700 million will be an equity facility and $150 million will be debt facility. Both the company and the investor are expected to sign a commitment letter by November 8th 2017.
The Chief Executive Officer of Optimum Petroleum Development Ltd, Engr. Yusuf K. J. N’jie, stated “Optimum Petroleum Development Company is re-asserting itself by directly raising capital for rapid appraisal/developmental drilling and early production of our OGO field. De-risking of our OGO field and other structures on our asset through appraisal and exploration drilling remains the clearest path of unlocking the said value of our asset. We are very glad to be in partnership with Milost Global Inc, who will be giving us the necessary funds that will make us quickly achieve these goals and also expand our asset portfolio.”
The Senior Partner & President of Milost Global Africa, Solly Asibey, stated “Optimum Petroleum Development Limited has been doing Oil & Gas exploration in Nigeria for more than 20 years, and we are excited to partner with them as they move into full scale production. The capital that we have allocated to Optimum Petroleum will enable them to become a formidable player in the Oil & Gas industry. This transaction will be the first Oil & Gas investment for Milost in Africa, and we are glad to be in partnership with such a dynamic company with seasoned management”
Managing Partner & CEO of Milost Global Inc., Mr. Mandla J. Gwadiso, added, “This is our first Oil & Gas transaction in Nigeria, optimum has a very solid portfolio of assets and that is what attracted us to the company. The fact that the management of the company is also industry veterans that have not only dedicated their lives in Optimum, but also invested heavily in the company’s development. For any value investor, it is a turn on to find a management that has skin in the game. We truly look forward to a very fruitful relationship with Yusuf and his team.”
About Optimum Petroleum Development Ltd
Optimum Petroleum Development Limited is a limited liability company incorporated in Nigeria under the Companies and Allied Matters Decree 1990 to undertake upstream and downstream activities in the petroleum Industry.
Oil Prospecting Licence OPL 310 was awarded to Optimum Petroleum Development Limited (The Company) in 1993 on a sole risk basis. The block was re-awarded in 2008 after the expiration of the first exploration phase. OPL 310 lies within the Benin Basin which is located at the eastern-most end of Africa’s Equatorial Atlantic margin adjacent to the Niger Delta. The Benin Basin is one of the few remaining under explored petroliferous basins.
OPL 310 is highly prospective and on trend with the Aje and Seme fields located in the adjacent Oil Mining Lease OML 113 and in offshore Benin respectively. Previous 2D (500 km) and 3D (400 sq km) seismic acquired on OPL 310 has revealed a number of prospects with potential for oil and gas accumulations. The three play types identified on the block include: AJE-look-alike closed structure over basement highs; SUBCROP-stratigraphic on lap and truncation traps; and FANS-deep-water submarine fans. The (Ogo) structure in OPL310 is exactly analogous to Aje field, and on trend 25 km to the east. OPL 310 has total potential recoverable reserves estimated at more than 8453 MMBOE; the gas could be used in the new West Africa Regional Gas Market. Ogo 1 and 2 were drilled in 2013. The Ogo discovery ranked among the top 10 Worldwide in 2013. The P10-P50 Gross recovery resources are 774-1180 MMBOE.
1600 sq km of 3-D Seismics was acquired in 2014, which confirmed the identified prospects and the CPR put the total mean resources for the block at 8453 MMBOE.