Gulf Oil and Gas accountACCOUNT

Niko Provides Updates on Madagascar and Indonesia

Source: www.gulfoilandgas.com 8/30/2013, Location: Asia

Niko is pleased to announce that it has executed two sets of agreements which, subject to the required government approvals, will provide proceeds of nearly $40 million.

Farm-out of Grand Prix PSC in Madagascar
Niko has signed a definitive farm-out agreement under which OMV, an integrated international oil and gas company, will earn a 40% interest in the Grand Prix PSC in Madagascar, with Niko retaining a 35% working interest. Closing of the deal is subject to the approval of the Government of Madagascar.

Other Arrangements for Semai V and Kofiau PSCs in Indonesia
Niko has also signed a definitive agreement with Hess Corporation for certain consideration in exchange for assuming a 100% interest in the Semai V PSC, located offshore Papua province in eastern Indonesia. Two wells have been previously drilled in the block, Andalan 1 and 2, with one future commitment well yet to be drilled. Drilling results from these wells indicate hydrocarbon potential remaining on the block.

The Company also signed an agreement to increase its working interest (effective prior to the drilling of the Elit-1 well discussed below) to 100% in the Kofiau PSC, also located offshore Papua province, for nominal consideration. The closings of these transactions are subject to the approval of the Government of Indonesia.

Indonesia Exploration Updates
Elit-1 Well
The Elit-1 well, located in the Kofiau PSC offshore Papua province in eastern Indonesia, has been drilled in water depth of 1,335 feet to a total depth of 3,915 feet in 9 days by Diamond Offshore’s Ocean Monarch drilling rig, under budget and ahead of schedule. The well encountered 10 feet of gas at the top of a 90 foot sand package and has been plugged and abandoned.

Drilling Operations
Pending the Company’s re-evaluation of its go-forward exploration capital spending priorities, the Company has decided to temporarily suspend its drilling program in Indonesia. The Company is working on various options to drill for third parties or to assign the contract for the Ocean Monarch rig and related service contracts to third parties for an extended period of time. The Ocean Monarch is being mobilized to the Makassar Strait area until the decision on the next drilling location has been finalized.

Financing Updates
Credit Facility
The Company is continuing its discussions with its credit facility syndicate banks regarding the re-determination of the borrowing base under its credit facility and is working with the banks on a deferral to September 30, 2013 for the redetermination date and a deferral to October 31, 2013 for any required adjustment to outstanding borrowings to reflect the new borrowing base.

Potential Refinancing of the Credit Facility
The Company is working on options to potentially refinance its credit facility to provide increased funding for its future capital programs.

Acquisitions and Divestitures News in Indonesia >>

Namibia >>  5/23/2019 - Calima Energy Limited has entered into an agreement to sell its interest in the Namibia PEL 90 licence (Block 2813B) to Tullow Namibia Limited (Tullow...
Australia >>  5/22/2019 - Vintage Energy has announced an executed binding Heads of Agreement (HoA) with Metgasco to become a joint venture partner in the ATP 2021 permit on th...

Brazil >>  5/22/2019 - Petrobras has expressed interest to the National Council for Energy Policy (CNPE) to exercise the pre-emption rights on the Transfer of Rights surplus...
Argentina >>  5/20/2019 - The Argentinian authorities officially awarded the exploration license of offshore block MLO 124 to an Eni-led consortium. The award is the outcome of...

Mexico >>  5/16/2019 - Ophir Energy has signed a Sales and Purchase Agreement ('SPA') relating to the sale of its 23.33% interest in Block 5 (Cuenca Salina), offshore Mexico...
Australia >>  5/14/2019 - Vintage Energy has executed a binding Heads of Agreement with Firetail Energy Services for it to become a joint venture partner in the EP126 permit (o...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Indonesia Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |

Oil & Gas Projects in Indonesia >>

More News

Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.