|By Marketwired .||
|June 12, 2014 06:15 PM EDT||
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