Niko closes Indonesian office

By Romel S. Gurky

Canadian oil and gas firm Niko Resources Ltd said that it has closed down its Indonesian office after selling most of its assets in the country.

?In the second quarter of fiscal 2016, the company closed its Indonesian office and discontinued operating activities related to its remaining Indonesia PSCs,? Niko said in a statement Thursday.

Niko added that as at September 30, 2015, the company's exploration subsidiaries with interests in Indonesian PSCs had $61 million of accounts payable and accrued liabilities and $144 million of recorded liabilities for unfulfilled exploration work commitments.

?There is significant uncertainty regarding whether certain of the company's exploration subsidiaries will be able to meet existing and future obligations and continue activities in the future,? Niko said.

As has been previously reported by this portal, the company received in July approval from the Government of Indonesia for the sale of its subsidiary holding an interest in the North Ganal PSC, East Kalimantan, for net cash consideration of $1.5 million after working capital adjustments.

?Closing of this transaction is scheduled to occur in the third quarter of fiscal 2016. Closing of the transaction for the sale of the company's interest in one additional Indonesian PSC (North Makassar Strait) is subject to the satisfaction or waiver of the remaining conditions precedent,? Niko said.

Niko sold its 31 percent working interest in North Ganal PSC to LSE-listed Ophir Energy Ltd, which in April of this year completed the acquisition of four other Niko Resources? oil and gas assets in Indonesia including West Papua IV, Aru, Kofiau and Halmahera-Kofiau PSCs in eastern Indonesia.

Ophir is also in the process of acquiring North Makassar Strait PSC.

Editing by Reiner Simanjuntak