RE: RE: They still are coming in A little off topic but still of interest to us.
Niko Resources acquires Black Gold, partner in Indonesia, for $310 million
CALGARY - Niko Resources Ltd. (TSX:NKO) has struck a deal to acquire its partner in its Indonesian operations, Black Gold LLC.
The deal will cost the oil and gas company, which is focused mainly on Asia, $310 million and will be financed by debt.
"Niko is attracted to this additional acreage due to its excellentprospectivity, good fiscal terms and proximity to the growing Asian oiland gas market," said Edward Sampson, chairman and CEO of Niko.
"In addition, the Black Gold team is impressive both in termsof knowledge and technology. Niko will now have an unparalleledplatform to add shareholder value by growing in Indonesia and beyond."
Once the deal is complete, Niko will hold an interest in 12.1million net exploration acres in Indonesia, making it one of the largerholders of deepwater exploration prospects in the southeast Asiancountry.
Niko said it plans to pay for the deal with convertibledebentures that will be held by Maju Investments, a subsidiary ofTemasek Holdings, an Asian investor headquartered in Singapore.
The transactions are subject to the approval of the Indonesiangovernment and lenders under the company's existing credit facility.
"It consolidates their interest in Indonesia. They'veessentially bought out their partner," said Alan Knowles, an analystwith Haywood Securities.
"Now they have 100 per cent interest in eight very large blocks in offshore Indonesia."
Most of Niko's existing operations are in offshore Indonesia,India and Bangladesh, with other assets in Iraq's Kurdistan region andoffshore Madagascar.
In July, the company made its first foray into the Caribbean bytaking on a 26 per cent stake in a natural gas project off the coast ofTrinidad and Tobago.
Knowles said he wouldn't rule out more acquisitions for Niko down the road.
"They are looking around the world for potential significant exploration," he said.
In its latest financial report, Niko earned more than US$45million in the second quarter of the company's 2010 fiscal yearcompared with a loss of US$22.4 million for the same period a yearearlier.
Oil and natural gas revenue jumped to $77.9 million from $24.1million as the energy company benefited from the start of gasproduction at its D6 block in India.
Niko shares rose 3.4 per cent to $87.59 on the Toronto Stock Exchange Wednesday.