Niko Resources (NKO-T) Oct 18, '16 announces that it has executed an agreement (the "2016 Settlement Agreement") with subsidiaries of Diamond Offshore ("Diamond") relating to the settlement of outstanding claims under drilling contracts and the Diamond Settlement Agreement executed in December 2013 (the "2013 Settlement Agreement") (including related judgements granted by courts in Texas and Alberta), in compliance with the terms of the previously disclosed amended and restated facilities agreement (the "Amended and Restated Facilities Agreement") (see the Company's press releases of March 14, 2016, June 10, 2016 and July 18, 2016).
Under the 2016 Settlement Agreement, in exchange for full and final mutual releases of outstanding claims under the drilling contracts and the 2013 Settlement Agreement (including related judgements), Niko has:
agreed to make future payments to Diamond equal to 20 percent of amounts to be retained by Niko pursuant to the waterfall distribution under the terms of the Amended and Restated Facilities Agreement, subject to a cap;
paid to Diamond a cash settlement amount; and
assigned to Diamond a portion of potential contingent payments under the previously announced sale agreement for Niko's interest in five Indonesian production sharing contracts.
"The settlement agreement with Diamond represents another important step in advancing the Company's strategic plan to maintain its core assets for a period of time with the goal of enhancing value and ultimately monetizing these assets for the benefit of the Company's stakeholders," said Robert S. Ellsworth Jr., interim Chief Executive Officer of Niko.
For further information, please contact:
Niko Resources Ltd.
(403) 262-1020
Glen Valk
VP Finance & CFO
or visit the Company's website at www.nikoresources.com |
