Niko Resources Transfers Interests in Blocks Offshore India to Reliance
Niko Resources Ltd. reports that the proposed financing agreements with a private energy and investment firm to fund the Company's financial obligations under the Production Sharing Contracts with the Government of India for its 10% in 12 offshore blocks in India have not become effective due to expiry and non-fulfillment of the escrow conditions to the delivery of such agreements.
In the case of 10 blocks, pursuant to conditional agreements previously entered into with Reliance Industries Ltd. ("Reliance"), which have now become enforceable, all of the Company's interest is transferred to Reliance, the operator of the blocks with a full indemnity from Reliance for all liability and costs under the respective PSCs. Under the agreements, the Company's interest in these blocks will be legally transferred to the operator subject to the consents required under the respective PSCs and, until the date of legal transfer being completed, the Company holds all interests in such blocks in trust for Reliance subject to the continuing indemnity.
The Company retains its 10% interest in the two remaining blocks, NEC-OSN-97/2 and KG-DWN-98/3, subject to the terms of all existing agreements.