Niko Resources Takes Indonesia Acreage To 12.1 Million Acres With Black Gold Energy Acquisition

Proactiveinvestors

Niko Resources (TSX: NKO) has expanded its operations in Indonesia by acquiring its partner in all projects in that country Black Gold Energy, taking its total interest to 12.1 million acres to make it one of the largest holders of deepwater exploration acreage.

The deal is worth a total C$310 million, which will be financed through the issue of convertible debentures, which will mature in three years and carry a conversion price of C$110.50 per share.

“Niko is attracted to this additional acreage due to its excellent prospectivity, good fiscal terms and proximity to the growing Asian oil and gas market. In addition, the Black Gold team is impressive both in terms of knowledge and technology. Niko will now have an unparalleled platform to add shareholder value by growing in Indonesia and beyond,” said Chairman and Chief Executive of Niko Edward Sampson.

The company has total oil and gas resources of 4.2 MMbbl (million barrels) and 1.68 tcf (trillion cubic feet) respectively, including 3 MMbbl and 1.18 tcf in the proved category.