Niko Provides Updates
CALGARY, ALBERTA -- (Marketwired) -- 10/01/13 -- Niko Resources Ltd.
("Niko" or the "Company") (TSX:NKO) is pleased to provide the
Farm-outs, Non-core Asset Dispositions, and Other Arrangements Update
Farm-out of Grand Prix PSC in Madagascar
Approval has been received from the Government of Madagascar for the
previously announced farm-out of a 40% interest in the Grand Prix PSC
to OMV, an integrated international oil and gas company, with Niko
retaining a 35% working interest. Proceeds related to this
transaction are to be received from OMV by October 3rd.
The Company is working with its credit facility syndicate banks on a
deferral to October 31, 2013 of the date for the re-determination of
the borrowing base under its credit facility and to November 30, 2013
for any required adjustment to outstanding borrowings to reflect the
new borrowing base. The funds to be received from OMV will be placed
in escrow, to be used, if required, to fund any potential reduction
in outstanding borrowings.
Potential Refinancing of the Credit Facility
The Company continues to progress options to refinance its credit
facility to provide increased funding for future capital programs.
Certain statements in this press release constitute forward-looking
information. Specifically, this press release contains forward
looking information relating to various governmental approvals,
proceeds from various agreements, the Company's working interest in
various PSCs, the re-determination of the Company's borrowing base
under the credit facility and the re-financing of the Company's
credit facility. These forward looking statements are based on
certain key expectations and assumptions of management, including
anticipated market conditions. The reader is cautioned that the
assumptions used in the preparation of such forward looking
information, although considered reasonable at the time of
preparation, may prove to be incorrect and there can be no assurance
that the expected proceeds from agreements will occur or occur on
terms acceptable to the Company. Actual results achieved may vary
from the information provided herein as a result of numerous known
and unknown risks and uncertainties and other factors an
variations may be material. Such factors include, but are not limited
to: risks associated with market conditions; risks associated with
oil and gas operations including equipment failures or accidents; the
ability of suppliers and third party contractors to meet commitments;
pressure or irregularities in geological formations; and adverse
weather conditions. Niko makes no representation that the actual
results achieved during the forecast period will be the same in whole
or in part as those forecast.
Niko Resources Ltd.
Chairman of the Board, President & CEO
Niko Resources Ltd.
VP Finance & CFO
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