Niko Announces Government Approval of $62 Million Sale of Its Equity Stake in
Block 5(c) in Trinidad
CALGARY, ALBERTA -- (Marketwired) -- 06/12/14 -- Niko Resources
Ltd. ("Niko" or the "Company") (TSX: NKO) is pleased to announce that
the Government of Trinidad and Tobago has approved the previously
announced sale of a 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 gross proceeds was paid to
Niko in early April and the remaining proceeds, adjusted for closing
adjustments, is to be paid to Niko prior to the end of June.
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.
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.
Niko Resources Ltd.
Niko Resources Ltd.
VP Finance & CFO
Press spacebar to pause and continue. Press esc to stop.