Niko Resources Ltd.

Niko Resources Ltd.

February 08, 2010 06:00 ET

Niko Announces the Strategic Acquisition of Voyager Energy Ltd.

CALGARY, ALBERTA--(Marketwire - Feb. 8, 2010) - Niko Resources Ltd. (TSX:NKO) ("Niko") is pleased to announce that it has entered into an Arrangement Agreement (the "Agreement") with Voyager Energy Ltd. ("Voyager") whereby Niko will acquire all of the outstanding shares of Voyager (the "Arrangement"). Pursuant to the Agreement, each Voyager shareholder will receive one common share of Niko for each 53 shares of Voyager held. Voyager has approximately 19.5 million shares outstanding (approximately 21 million fully diluted).

Voyager is a partner in Niko's 2AB Block in Trinidad. Voyager also holds interests in the Shallow and Deep Horizon Central Range blocks and the Shallow and Deep Horizon Guayaguayare blocks in Trinidad. Voyager has been successful in obtaining exploration opportunities in Trinidad, where Voyager management has active contacts and experience. Niko will benefit from the addition of Mr. Gerold Fong, President and CEO of Voyager, a key player in Voyager's success in the region, to Niko's team. Through this acquisition, Niko will have additional resources to devote to opportunities in the Caribbean region.

Trinidad has a proven onshore hydrocarbon producing basin with 2 billion barrels of oil produced to date, offshore 3P gas reserves estimated to be 30 Tcf and is the largest exporter of LNG to the United States. The onshore and near shore portions of the basin are underexplored with the potential for significant oil and gas discoveries. Trinidad provides a climate of political and fiscal stability supported by a government that promotes and encourages the development of the country's oil and gas industry.

The Board of Directors of Voyager has unanimously approved the Arrangement. The Board has concluded that the Arrangement is in the best interests of Voyager's shareholders and has resolved to recommend that holders of Voyager Shares vote their securities in favour of the Arrangement. The Board of Directors, management and certain shareholders of Voyager, representing approximately 62% of the fully diluted shares outstanding have entered into support agreements to vote their securities in favour of the Arrangement. It is anticipated that a meeting of Voyager shareholders will be held in March to approve the Arrangement and closing is expected to occur within a few days following the meeting, subject to all necessary approvals.

FirstEnergy Capital Corp. is acting as financial advisor to Voyager and has provided Voyager's Board of Directors with its verbal opinion that, subject to its review of the final form of the documents effecting the transaction, the consideration payable to Voyager shareholders under the Arrangement is fair, from a financial point of view, to Voyager shareholders.

February 8, 2010

Certain statements in this press release are forward-looking statements. Specifically, this press release contains forward-looking statements relating to management's approach to operations, estimates of future sales, production and deliveries, business plans for drilling and development, estimated amounts and timing of capital expenditures, anticipated operating costs, royalty rates, cash flows, transportation plans and capacity, anticipated access to infrastructure or other expectations, beliefs, plans, goals, objectives, assumptions and statements about future events or performance. The reader is cautioned that the assumptions used in the preparation of such information, although considered reasonable by Niko at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Such factors include, but are not limited to: general economic, market and business conditions; industry capacity; competitive action by other companies; fluctuations in oil and gas prices; the results of exploration and development drilling and related activities; the uncertainty of estimates and projections relating to productions, costs and expenses; uncertainties as to the availability and cost of financing; fluctuations in currency exchange rates; the imprecision in reserve estimates; risks associated with oil and gas operations, such as operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the weather in the Company's area of operations; the ability of suppliers to meet commitments; changes in environmental and other regulations; actions by governmental authorities including changes in laws and increases in taxes; decisions or approvals of administrative tribunals; risks in conducting foreign operations (for example, political and fiscal instability or the possibility of civil unrest or military action in countries such as India and Bangladesh); the effect of acts of, or actions against international terrorism; and other factors, many of which are beyond the control of Niko. There is no representation by Niko that the actual results achieved during the forecast period will be the same in whole or in part as those forecast.

Contact Information

  • Niko Resources Ltd.
    Edward S. Sampson
    Chairman of the Board, President & CEO
    (403) 262-1020
    Niko Resources Ltd.
    Murray Hesje
    VP Finance & CFO
    (403) 262-1020