Niko Resources Ltd. has executed a definitive agreement with a subsidiary of Ophir Energy relating to the sale of Niko’s interests in seven Indonesian production-sharing contracts (PSCs) for cash consideration of $31 million, with further payments of up to $56 million contingent on future exploration success, according to a news release.

Closings of the transactions for each of the seven PSCs are subject to closing adjustments and a number of conditions including the approval of the government of Indonesia, certain other third party consents and agreements and other conditions customary for transactions of this nature.

Upon closings of the transactions, a specified portion of the proceeds would be used to reduce the company’s outstanding contract settlement obligation to Diamond Offshore, with the remainder subject to conditions outlined in the company's term loan facilities agreement, the release said.

PSCs and working interest included in agreement are: West Papua IV, 49.9%; Aru, 60%; North Makasar Strait, 30%; North Ganal, 18.5%; Obi, 2%; Kofiau, 100%; and Halmahera-Kofiau, 80%.