Niko sells equity stake in offshore block 5(c) in Trinidad

Offshore staff

CALGARY, CanadaNiko Resources Ltd. (TSX: NKO) 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.

Upon closing of the transaction, under the settlement agreement entered into in December 2013 with Diamond Offshore, a specified portion of the proceeds will 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 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,” said Jake Brace, president. “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.”

04/01/2014

 

 

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