Niko closes Black Gold acquisition

Calgary-based E&P firm Niko Resources Ltd. Announced on Thursday that it has now closed the acquisition of Black Gold LLC for US$300 million.

Black Gold is a partner in all of Niko's current Indonesian blocks.

With this transaction completed Niko will hold an interest in 12.1 million net exploration acres in Indonesia, making Niko one of the larger holders of deepwater exploration acreage.

The acquisition was financed largely through a Cdn. $310 million convertible debenture credit facility and in part from general corporate funds. The convertible debenture credit facility matures in 3 years, bears a coupon rate of 5.0% and provides for a conversion price of Cdn. $110.50 for each common share. The convertible debenture credit facility was fully funded and subscribed for by Maju Investments, a subsidiary of Temasek Holdings of Singapore.

Niko also announced that Gary Christenson, the former head of Black Gold, has become Vice President of SE Asia Operations and the entire Black Gold team has joined the company. ?This addition to Indonesia's operations will greatly assist in executing planned work programs and growing the Company within and beyond the region,? the company said.(alex)