Optimum Petroleum Development Ltd, a Nigerian based exploration, development and production company, has signed a financing term sheet of $850m with Milost Global. 

The company will receive a combo of Debt and Equity, of which $700m will be an equity facility and $150m will be debt facility.

Solly Asibey, Senior Partner & President of Milost Global Africa, said: “Optimum Petroleum Development 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,” he said.

Optimum Petroleum Development 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.

Engr. Yusuf K. J. N’jie, CEO of Optimum Petroleum Development, said: “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,” he said.

Mandla J. Gwadiso, Managing Partner & CEO of Milost Global, 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.”