SOURCE: Niko Resources Ltd.

Niko Resources Ltd.

June 13, 2016 07:30 ET

Niko Provides Corporate Updates

CALGARY, AB--(Marketwired - June 13, 2016) - Niko Resources Ltd. ("Niko" or the "Company") (TSX: NKO) provides the following updates.

Non‐Payments by Petrobangla of Amounts Due

As previously disclosed in the Company's press release of May 30, 2016, the international tribunals (the "Tribunals") constituted under the rules of the International Centre for Settlement of Investment Disputes ("ICSID") issued the Third Decision on the Payment Claim initiated by the Company's indirect subsidiary, Niko Resources (Bangladesh) Ltd. ("NRBL"), against Bangladesh Oil, Gas and Mineral Corporation ("Petrobangla"), a crown corporation of the Government of Bangladesh ("GOB"), for payment owing to NRBL by Petrobangla for gas deliveries made under the Feni Gas Purchase and Sale Agreement (the "Feni GPSA"). The Third Decision on the Payment Claim provides for the payment of approximately $35 million by Petrobangla to NRBL, with the payment to be made immediately and not subject to any contrary orders of the Courts in Bangladesh (including the Stay Order described below).

To date, Petrobangla has not complied with the Third Decision on the Payment Claim. In addition, in June 2016, Petrobangla paid reduced amounts to the operator of the Block 9 production sharing contract (the "Block 9 PSC") for the invoiced amounts due for gas and condensate supplied from the Block 9 PSC, with the approximately $2 million withheld by Petrobangla equivalent to the 60 percent share in the Block 9 PSC held by Niko Exploration (Block 9) Limited, a separate indirect subsidiary of the Company.

Extension of Stay Order of the Bangladesh Court

As previously disclosed in the Company's press release of May 16, 2016, a writ petition (the "Writ Petition") has been filed before the Supreme Court of Bangladesh, High Court Division (the "Court") in Dhaka by a citizen of Bangladesh against (i) the GOB, (ii) Petrobangla, (iii) Bangladesh Petroleum Exploration & Production Company Limited ("Bapex"), (iv) NRBL, and (v) Niko. The Writ Petition relates to the Feni GPSA and the Joint Venture Agreement (the "JVA") between Bapex and NRBL for the Feni and Chattak fields in Bangladesh, which agreements are, as previously disclosed, currently the subject of arbitration disputes to be decided upon by the Tribunals. Pending resolution of the Writ Petition, the Court ordered a stay (the "Stay Order") for a period of one month any kind of benefit given by the GOB, Petrobangla or Bapex to NRBL or Niko or any of their affiliates or subsidiaries, including payments made for gas supplied from the Block 9 PSC.

The Court has subsequently extended the Stay Order for an additional period of three months (to September 2016).

Niko believes that the Tribunals have exclusive jurisdiction to decide all disputes relating to the Feni GPSA and the JVA. In addition, the Company believes that Petrobangla's withholding of funds related to invoiced amounts due for gas and condensate supplied from the Block 9 PSC constitutes breaches of the purchase and sales agreements governing gas and condensate supplied from the Block 9 PSC as well as a breach of the Block 9 PSC.

Niko will continue to vigorously pursue its rights in these matters.

Forward‐Looking Information

Certain statements in this press release constitute forward‐looking information. Specifically, this press release contains forward looking information relating to the Company's view of ICSID's jurisdiction in respect of disputes concerning the GPSA and the JVA and of whether Petrobangla's withholding of funds related to invoiced amounts due for gas and condensate supplied from the Block 9 PSC constitutes breaches of the purchase and sales agreements governing gas and condensate supplied from the Block 9 PSC as well as a breach of the production sharing contract for Block 9. 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. There can be no assurances that the Company will be able to successfully pursue its rights in respect of the writ petition. 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 Court, and the risks discussed under the heading "Risk Factors" in the Company's Annual Information Form for the year‐ended March 31, 2015 and in the Company's public disclosure documents, 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