$40 Mln for Niko from Hess and OMV Deals

$40 Mln for Niko from Hess and OMV Deals

Niko Resources has executed two sets of agreements which, subject to the required government approvals, will provide proceeds of nearly $40 million.

Farm-out of Grand Prix PSC in Madagascar

Niko has signed a definitive farm-out agreement under which OMV, an integrated international oil and gas company, will earn a 40% interest in the Grand Prix PSC in Madagascar, with Niko retaining a 35% working interest. Closing of the deal is subject to the approval of the Government of Madagascar.

Other Arrangements for Semai V and Kofiau PSCs in Indonesia

Niko has also signed a definitive agreement with Hess Corporation for certain consideration in exchange for assuming a 100% interest in the Semai V PSC, located offshore Papua province in eastern Indonesia. Two wells have been previously drilled in the block, Andalan 1 and 2, with one future commitment well yet to be drilled. Drilling results from these wells indicate hydrocarbon potential remaining on the block. The Company also signed an agreement to increase its working interest (effective prior to the drilling of the Elit-1 well discussed below) to 100% in the Kofiau PSC, also located offshore Papua province, for nominal consideration. The closings of these transactions are subject to the approval of the Government of Indonesia.

[mappress]
August 30, 2013