Niko Resources Ltd NKRSF

Did thus cause drop? Already posted?

[zenda]

Robert Disbrow's investment Niko Resources Inc. (NKO) had another busy day, losing 4.5 cents to 15 cents on 10.4 million shares. It has risen from five cents and traded over 81 million shares since Oct. 15. On the evening of Oct. 14, it announced that an International Centre for Settlement of Investment Disputes (ICSID) tribunal had ruled in its favour in a Bangladeshi case regarding gas payments. The case is complex, and each side tells the story differently, but the basic facts are these: In 2005, there were two blowouts at a Bangladeshi gas field operated by Niko. The government and the national oil company, Petrobangla (a subsidiary of which had a joint venture with Niko at the field), held Niko responsible for the blowouts and demanded over $100-million (U.S.) in damages. Niko denied responsibility. Separately, Niko claimed to be owed money from Petrobangla for gas deliveries; Petrobangla was apparently withholding payments as it demanded the blowout compensation. Last week, the ICSID tribunal ordered Petrobangla to set aside more than $30-million (U 147104.S.) to pay for the gas deliveries. That is good news for Niko, but no payments will actually be received until the other matter -- the blowout compensation -- has been resolved. Petrobangla and the government's compensation claim of about $107-million (U.S.) is much higher than what Niko is owed (and could get even higher following an environmental assessment to come), so last week's victory for Niko could quickly turn to ashes. The compensation matter will be heard from Nov. 2 to 6, according to the local Daily Star. SEDAR filings indicate that if Niko does not prevail, it could lose the Bangladeshi assets and will have to pay a lot of money that it simply does not have. All this is to say nothing of the completely different problems that Niko is facing in India, as most recently mentioned in the Sept. 22 Energy Summary. All in all, the 15-cent stock has had a uniquely miserable fall from its mid-2010 high of over $115.