Some seem to think so .....interesting article.
Remember that these assets are going to Oando Energy Resources(OER), the Company’s relatively new 94% owned subsidiary listed in Canada? In the event of this transaction, those investors bringing in the $650Million will be owning 65% of the equity in OER. That company itself will be saddled with a debt of $800Million. Oando’s own shares in OER will be so diluted it’d become like just any other investor in Oando Energy Resources, having a small stake.
From the proceeds (sale of roughly 25,000Barrels of Oil Per Day and 112Million standard cubic feet of gas as well as part payments for power generated from Okpai), OER will pay cash call on the projects as well as service the debt with roughly $150Million per year for the next seven years.