Niko Resources Ltd NKRSF

Energy Oil & Gas E&P

Niko Resources Ltd is an oil and natural gas exploration and production company.

GREY:NKRSF - Post by User

Niko Resources Ltd

Bullboard Posts

Comment by redscorpionon Jun 05, 2016 5:04am

125 Views

Post# 24935129

RE:What is the value of Niko's 10% in India?

GoUPnotDOWN wrote:
Many of you already know this and some have already referenced it, but its worth mentioning again. BP paid over $2 Billion for a 30% share in the India block. (article from 2011)

https://timesofindia.indiatimes.com/business/india-business/RIL-completes-7-billion-deal-with-BP/articleshow/9803992.cms

I think over the past year or two Niko was obviously in a position of weakness. With the next couple of hurdles about to be accomplished, I think Niko has turned the corner and there will be lots of interest in trying to buy the 10% Niko share in India. I am in favour of Niko selling this asset. And it seems KG is going to be the place to be:

https://www.newindianexpress.com/states/andhra_pradesh/Minister-promises-huge-investments-in-oil-sector/2016/06/05/article3467080.ece

The question is, how many players are going to come calling and how much money will be offered with the government doubling the price in the block? BP I would guess will be one of them. They know the value and they know the details.

Arbitration will be withdrawn, which will be announced any moment. My guess is there will be lots of callers in the near future. There will be a lot of demand for their supply. With more progress and further development to raise output by RIL that can only help drive the price up. Let's hope Niko is able to fund their part of the current development (and near future additions) while holding discussions with possible buyers.

If BP paid over 7 billion for 30% then I think its fair to say that Niko's 10% should be worth over $2 Billion. Even if they didn't get to this number it is still a significant asset. And let's hope that is in US dollars based on the current exchange (Approx 2.5 Billion Canadian). What is Niko's share price after their debt suddenly goes away? Over $ 8? $10? $12? Even more then that? With arbitration and positive vote concluded it will be interesting to see where the share price goes. It won't be where it is now, that is for certain.

Lots of other things on Whiskey's bucket list will be gravy and many of the items on his list seem to be falling into place. Bangladesh has value and even Trinidad if they don't drill dry holes like in Indonesia.