Niko Announces $62 Million Sale of Its Equity Stake in Block 5(c) in Trinidad

Niko Announces $62 Million Sale of Its Equity Stake in Block 5(c) in Trinidad 
CALGARY, ALBERTA -- (Marketwired) -- 03/31/14 -- Niko Resources Ltd.
("Niko" or the "Company") (TSX:NKO) is pleased to announce that it
has executed a definitive sale and purchase agreement for the sale of
its 25% interest in Block 5(c) in Trinidad and Tobago to a subsidiary
of the BG Group, 75% interest owner and operator of the block, for
gross proceeds of $62 million. Under the terms of the agreement, a
deposit for a portion of the sales price will be paid to Niko in
early April. 
Closing of the transaction is subject to the Government of Trinidad
and Tobago, other conditions customary for transactions of this
nature, and closing adjustments. 
Upon closing of the transaction, under the settlement agreement
entered into in December 2013 with Diamond Offshore, a specified
portion of the proceeds will be used to reduce the Company's
outstanding obligation to Diamond. In addition, under the terms of
the Company's term loan facilities agreement, $20 million of the
proceeds will be used by the Company to fully repay Facility E and,
depending on certain circumstances, some or all of the remaining
proceeds will be offered to the Lenders as a potential partial
prepayment of Facility A.  
"In November 2013, we announced our restructuring plans for the
Company and in December, we closed on a comprehensive financing
package. The sale of our interest in Block 5(c) is another important
step in our plans and we look forward to further progress as we move
through the year," said Jake Brace, President. 
Forward-Looking Information 
Certain statements in this press release constitute forward-looking
information. Specifically, this press release contains forward
looking information relating to the closing of the Block 5(c) sales
transaction and the use of proceeds of the transaction upon closing.
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. Actual results achieved may vary from the information
provided herein as a result of numerous known and unknown risks and
uncertainties and other factors and such 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.
Contacts:
Niko Resources Ltd.
Jake Brace
President
(403) 262-1020 
Niko Resources Ltd.
Glen Valk
VP Finance & CFO
(403) 262-1020
www.nikoresources.com
 
 
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