CALGARY, AB—(Marketwired – June 27, 2017) – Niko Resources Ltd. (“Niko” or the “Company”) (TSX: NKO) provides the following corporate update:
Minimum Contracted Quantities Dispute — India
As previously disclosed, in accordance with previous contracts for natural gas sales from the Hazira field in India, the Company had committed to deliver certain minimum quantities. For the period ended December 31, 2007, the Company was unable to deliver the minimum quantities to certain customers and the Company's joint operating partner in the Hazira field delivered the shortfall volumes from other gas sources. The Company's joint operating partner filed arbitration claims for losses incurred as a result of the delivery of these shortfall volumes.
In June 2017, the arbitration tribunal issued an award in favour of the Company's joint operating partner in an amount of approximately $17.8 million along with the interest thereon at the rate of 10% per annum from 2012 to the date of award (approximately $9.7 million) plus further interest at 10% per annum from the date of the award until payment. The Company plans to appeal the award in the Indian court system under the rules governing Indian arbitration.
Certain statements in this press release constitute forward–looking information. Specifically, this press release contains forward looking information relating to the Company's plans to appeal the award of the arbitration tribunal. 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. The failure by the Company to appeal the award of the arbitration tribunal or otherwise prevail against the claim of its joint operating partner in the Hazira field could have a material adverse impact on the Company. 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, some 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, unforeseen litigation and the risks discussed under “Risk Factors” in the Company's Annual Information Form for the year–ended March 31, 2017 and in the Company's public disclosure documents, and other factors, many of which are beyond the Company's control.
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.