CALGARY — Niko Resources Ltd. (TSX:NKO), a Calgary company that operates in Asia, says it has struck deals to acquire Black Gold Energy LLC, its partner in all of the Canadian company's Indonesian offshore energy properties.
The deal will cost the company $310 million and will be financed by an offering of debentures, Niko said early Wednesday.
The company said once the transaction is complete, Niko will hold an interest in 12.1 million net exploration acres in Indonesia, making it one of the larger holders of deepwater exploration prospects in the southeast Asian country, which is one of the world's biggest energy producers.
"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, said Edward Sampson, chairman and CEO of Niko. "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 about $310 million of financing. Niko said it plans to pay for the deal with convertible debentures and has executed related agreements. The debentures will be held by Maju Investments, a subsidiary of Temasek Holdings, an Asian investor headquartered in Singapore.
The transactions are subject to the approval of the Indonesian government and lenders under the company's existing credit facility.
Niko operates in India, Pakistan, Bangladesh, Indonesia and other countries, producing natural gas and oil.