Niko to Snap Up Major Interest in Indonesian Deep Waters
Niko has executed agreements to acquire Black Gold LLC. Black Gold is a partner in all of Niko's current Indonesian blocks. Upon completion of this transaction, Niko will hold an interest in 12.1 million net exploration acres in Indonesia, making Niko one of the larger holders of deepwater exploration acreage.
Niko will also benefit from key Black Gold personnel joining the team. The expanded team has extensive experience, in-depth knowledge and understanding of the exploration, operation and regulatory environment in Indonesia. Building on Black Gold's track record in Indonesia, Niko will be well-positioned for the opportunities opening up in the deepwater frontier of Indonesia and beyond.
Edward Sampson, Chairman and CEO of Niko, said "Niko is attracted to this additional acreage due to its excellent prospectivity, good fiscal terms and proximity to the growing Asian oil and gas market. In addition, the Black Gold team is impressive both in terms of knowledge and technology. Niko will now have an unparalleled platform to add shareholder value by growing in Indonesia and beyond."
The acquisition requires approximately Cdn. $310 million of financing. Niko plans to fund the acquisition with convertible debentures and has executed related agreements. Maturing in 3 years, the debentures will have no related fees and will carry a coupon rate of 5% per annum, and a conversion price of Cdn. $110.50 per share. The debentures will be held by Maju Investments, a subsidiary of Temasek Holdings, an Asia investor headquartered in Singapore.
The successful completion of these transactions is subject to the approval of the Government of Indonesia (BPMIGAS) and lenders under the Company's existing credit facility.
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