Niko Resources acquires Black Gold

Canadian firm Niko Resources announced on Wednesday that it has executed agreements to acquire Black Gold LLC. Black Gold is a partner in all of Niko's current Indonesian blocks.

Upon completion of this transaction, 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.

Niko will also benefit from key Black Gold personnel joining the team, the company said. The expanded team has extensive experience, in-depth knowledge and understanding of the exploration, operation and regulatory environment in Indonesia, it added.

The acquisition requires approximately C$310 million of financing. Niko plans to fund the acquisition with convertible debentures and has executed related agreements. Maturing in 3 years, the debentures will have no related fees and will carry a coupon rate of 5% per annum, and a conversion price of C$110.50 per share. The debentures will be held by Maju Investments, a subsidiary of Temasek Holdings, an Asia investor headquartered in Singapore.

The successful completion of these transactions is subject to the approval of the Government of Indonesia (BPMIGAS) and lenders under the company's existing credit facility. (alex)