BY MICHAEL EBOH

Oando Plc is to acquire stakes in a Canadian firm, Exile Resources Incorporated in exchange for certain percentage of its holdings in some of its oil wells in Nigeria.

The deal is also likely to see the listing of Oando Plc’s shares on the Toronto Stock Exchange, TSX.

According to the term sheet entered into by both companies, the agreement will see Exile acquiring certain interests of Oando in respect of oil mining leases and oil prospecting licenses in exchange for 100 million post-consolidation common shares in the capital of Exile.

According to a statement presented to the Nigeria Stock Exchange, NSE, and the investing community, both companies have agreed to negotiate exclusively with each other in good faith and use their reasonable efforts to negotiate a definitive agreement to give effect to the acquisition on or prior to September 30, 2011.

The statement, however, noted that the manner in which the acquisition will be completed will be determined after each party has had an opportunity to complete its due diligence and consider all applicable tax, securities and other laws.