Optimum secures funding for work in Ogo oilfield offshore Lagos

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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.”

 

Source: Press Release