Sunday, November 22, 2009

Niko Resources Acquires Black Gold Energy

Niko Resources Ltd acquires 100% stake in Black Gold Energy LLC for Cdn $310 Canadian million and makes the Canadian company one of offshore oil and gas operators in Indonesia.
At the moment, the two companies have partnered in controlling 12.1 million areas of oil and gas blocks in Indonesia. Temasek Holding through its subsidiary Maju Investment plays a role in funding the acquisition.
Chairman of Board, President & CEO of Niko Resources Edward S. Sampson revealed Black Gold is a partner in all working areas that Niko controls in Indonesia. With the acquisition, he added, the company became the largest offshore working area controller in Indonesia and would also reap up benefit from the trained workers that its former partner had.
"They have deep knowledge ad experience on exploration, operational activities, and environment regulations in Indonesia. With the acquisition, Niko will get better position and knowledge to open deep sea block in Indonesia," Sampson told last week.
Sampson informed the acquisition would require around Cdn.$310 million. Niko, he continued, planned to raise the fund from convertible bonds.
The three-year bond will not charge related costs, will offer a coupon rate of 5% per annum, and will fix conversion price at $110.50 per share. The bond will be owned by Maju Investment, a subsidiary of Temasek Holdings, a Singapore-based Asian investor.
"The success of the transaction will depend on approval from the Indonesian government through BP Migas and from the lenders."
Niko Resources once seized 20,000 kilometer squares of five blocks controlled in 2008, namely West Sageri, South East Ganal I, South Matindok and Kofiau blocks, in which Niko partnered with Kaizan Oil & Gas LLC. Niko in the same year also controlled Seram lock with Biak Petroleum LLC as a partner. Kaizan Oil and Biak Petroleum are subsidiaries of Black Gold Energy LLC.
When the government complained about lack of interests in 16 blocks offered by the government for period December 2008-April 2009, Niko Resources was able to get three of five blocks going to the investors, namely Halmahera Kofiau, East Bula, and West Papua IV blocks, in which they partner with Black Gold.

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