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Oando Plc - Oando Plc Opens N54.6 Billion Rights Issue Offering

Release Date: 28/12/2012 15:00:00      Code(s): OAO OAON     
                                                           
Oando PLC
(Incorporated in Nigeria and registered as an external company in South Africa) 
External Registration number: RC 6474
Company registration number: 2005/038824/10
Share Code on the JSE Limited: OAO 
Share Code on the Nigerian Stock Exchange: UNTP 
ISIN: NGOANDO00002 
(?Oando? or the ?Group?)

28 December 2012

PRESS STATEMENT

Oando PLC opens NGN54.6 Billion Rights Issue Offering

Lagos, Nigeria ? Oando, Nigeria?s leading indigenous energy group listed on both the
Nigerian and Johannesburg Stock Exchange, today opened its Rights Issue to raise NGN54.6 Billion through the issuance of 4,548,236,276
ordinary shares of 50 Kobo at NGN12.00 per share. On the basis of two (2) new ordinary shares for every ordinary share of 50 Kobo each
held as at the close of business on Friday, 19 October 2012 for those shareholders whose names appear on the Register of Members
and transfer books of the Company which are maintained in Nigeria and shareholders whose names appear on the Register of
Members and transfer books of the Company which are maintained in South Africa as at the close of business on the Friday prior to
the issue opening date, 4 January 2013.

The Rights Issue exercise will open on Friday, 28 December, 2012 on the Nigerian Securities Exchange, 4 January 2013 on JSE Limited,
and close on Wednesday, 6 February, 2013 on both exchanges. Vetiva Capital Management Limited is the Lead Issuing House, with FBN
Capital Limited and FCMB Capital Markets Limited will act as Joint Issuing Houses.

The proceeds from the Rights issue will be used for the following:

       -   Part-repayment of NGN60 billion syndicated loan used to fund the acquisition of upstream assets and swamp drilling rigs.
       -   Part-financing of acquisition of upstream and midstream assets by Oando?s Upstream subsidiary, Oando Energy Resources
           (?OER?).
       -   Investment in working capital to support increased level of business.

Commenting Mr. Wale Tinubu, Group Chief Executive, Oando PLC said: ?We are happy to announce the opening of our Rights Issue
offering, in line with our corporate strategy for balance sheet optimization and the financing of growth initiatives in the Upstream
sector.

?Pursuant to the recent signing of agreements by our affiliate OER with ConocoPhillips, to acquire their entire Nigerian Asset base for
$1.79 Billion plus customary adjustments, OER will be transformed from a small size oil company with ~4,500 bbls/day of production
and 9 million barrels of oil equivalent (?MMboe?) to a midsize oil producer with close to 50,000bbls/day of production with 2P
reserves of 213 MMboe and 2C reserves of 198 MMboe, with significant risked resources?.

?The successful outcome of the Rights Issue will position Oando to increase value for shareholders in the Upstream through focused
portfolio growth in production, cash margins and improved returns on capital deployed. We count on the consistent support of our
shareholders to seize the opportunity to take up their rights and benefit from the higher margin value creation the Upstream offers.?

Ends

For More information, please contact:

Tokunboh Akindele
Head, Investor Relations
aakindele@oandoplc.com

Oando PLC
10th Floor
2, Ajose Adeogun Street
Victoria Island
Lagos, Nigeria

Tel: +234 (1) 2601290-9, Ext 6396
DL: +234 (1) 2702496
Fax: +234 (1) 2611366

Website: www.oandoplc.com


28 December 2012
Sandton

JSE Sponsor
Macquarie First South Capital (Proprietary) Limited

Date: 28/12/2012 03:00:00 Supplied by www.sharenet.co.za                     
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