Niger Delta Exploration & Production Plc has perfected plans to raise additional $400 million through private placement and Initial Public Offering from the Nigerian capital market.
Dr. Layi Fatona, the company’s Managing Director, said this at the NASD OTC PLC investors forum on Monday in Lagos.
Fatona said the company would also extend its petroleum exploration activities across sub-saharan Africa.
He said the company had already completed the first tranche of $100 million capital raising exercise through private placement.
Fatona said the next tranche of $300 million would be sourced through IPO that would open in a few weeks.
He said the company was also seeking opportunities outside Nigeria and had entered into partnership with the State National Company of Southern Sudan for low cost entry opportunity in oil and gas exportation.
He added that the synergy would transform the company from a fully integrated Nigerian Oil and gas company to a Pan African company.
The Managing Director said the capital raising would fast-track the company’s repositioning exercise, through the acquisition of more assets and increase gas production.
Fatona said: “We are the only indigenous company that can boast of ownership of a mini refinery.
“Last year, we sold a total of 20.2 million litres of diesel to Port Harcourt refinery.
“We contribute to domestic market notably diesel.
“We have 2,000 licensed diesel buyers that come to our facility for diesel.”
According to Fatona, the company since inception has delivered 60 million litres of diesel to the Nigerian market.
He said: “We are currently embarking on cost cutting exercise and we are looking at other areas, especially diversification and capital raising, to increase production and acquire additional assets and facilities.
“We would expand penetration in serving Nigerian Market.
“We would be a very strong player in Nigeria gas market.
“We have monetised and commercialised our gas and that has given us enough leverage.
“We also want to play in power generation and we would negotiate delivery of other products.”
Fatona also urged shareholders to invest in the company, noting that it has consistently paid dividend to investors.
NAN.