SOURCE: Niko Resources Ltd.

Niko Resources Ltd.

May 30, 2016 07:30 ET

Niko Announces ICSID Tribunals' Third Decision on Payment Claim

CALGARY, AB --(Marketwired - May 30, 2016) - Niko Resources Ltd. ("Niko" or the "Company") (TSX: NKO) is pleased to announce that the international tribunals constituted under the Rules of the International Centre for Settlement of Investment Disputes ("ICSID") have issued the Third Decision on the Payment Claim initiated by the Company's indirect subsidiary, Niko Resources (Bangladesh) Ltd. ("NRBL"), against Bangladesh Oil Gas & Mineral Corporation ("Petrobangla"), a crown corporation of the Government of Bangladesh, for payments owing to NRBL by Petrobangla for gas deliveries made under the Feni Gas Purchase and Sale Agreement.

The Third Decision on the Payment Claim provides as follows:

  1. Petrobangla shall pay to NRBL forthwith and free of any restrictions:
    1. approximately US$25 million plus approximately 140 million Bangladeshi taka ("BDT") as per invoices for gas delivered from November 2004 to April 2010; plus
    2. interest to September 11, 2014 of approximately US$6 million and approximately 50 million BDT; plus
    3. interest from September 12, 2014, at the six‐month London Interbank Offered Rate + 2% for USD amounts and 5% for BDT amounts, compounded annually;
  2. This payment must be made immediately and is not subject to any contrary orders from the Courts in Bangladesh (including the writ petition and stay order which was announced by the Company on May 16, 2016); and
  3. In view of the difficulties which have occurred in the past with respect to the payment of the amount owed to NRBL, the Tribunals will retain jurisdiction over Petrobangla and NRBL until final settlement of this payment.

Based on a USD to BDT exchange rate of 1 USD = 78 BDT, the claim amount due to NRBL to date totals approximately $35.3 million (approximately $27.1 million for invoiced amounts, approximately $6.6 million for accrued interest to September 11, 2014 and approximately $1.6 million for interest from September 12, 2014 to date). There is no assurance that Petrobangla will comply with the Third Decision on the Payment Claim. For further information regarding the ICSID proceedings and other claims related to the Feni and Chattak assets in Bangladesh, please see the Company's Annual Information Form for the year ended March 31, 2015 and the Company's public disclosure documents filed on the Company's SEDAR profile at www.sedar.com.

Forward‐Looking Information

Certain statements in this press release constitute forward‐looking information. Specifically, this press release contains forward‐looking information relating implicitly to the payment of funds pursuant to the Third Decision on the Payment Claim. Such forward‐looking information is based on a number of risks, uncertainties and assumptions, which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. In view of the difficulties which have occurred in the past with respect to the payment of the amount owed to NRBL, no assurance can be made that Petrobangla will comply with the Third Decision on the Payment Claim on a timely basis or at all. Undue reliance should not be placed on forward‐looking information. Such forward‐looking information reflects the Company's current beliefs and assumptions and is based on information currently available to the Company. This forward‐looking information is based on certain key expectations and assumptions, many of which are not within the control of the Company. The reader is cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors and such variations may be material. Such risk factors include, but are not limited to the process and future determinations of the Tribunals and other factors, many of which are beyond the Company's control. Niko makes no representation that the actual results achieved during the forecast period will be the same in whole or in part as those forecast.

The forward‐looking information included in this press release is expressly qualified in its entirety by this cautionary statement. The forward‐looking information included herein is made as of the date of this press release and Niko assumes no obligation to update or revise any forward‐looking information to reflect new events or circumstances, except as required by law.

Contact Information

  • For further information, please contact:
    Niko Resources Ltd.
    (403) 262‐1020
    Glen Valk
    VP Finance & CFO
    www.nikoresources.com