Issuance of unsecured notes
On June 13, 2013, the Company issued US$63.5 million principal amount of Unsecured Notes for aggregate net proceeds of approximately US$58.5 million, after deducting the initial purchasers' discount and the estimated related expenses payable by the Company. The Unsecured Notes bear interest at the rate of 7 percent per annum, payable monthly, and will be repaid through twelve equal monthly principal payments commencing August 13, 2013. The Company may repay some or all of the Unsecured Notes, plus any accrued and unpaid interest, by issuing Common Shares of the Company, rather than repaying the Unsecured Notes in money. If the Company elects to make any portion of a payment in Common Shares, the number of Common Shares to be issued will be determined by dividing the amount to be paid in Common Shares by 94.5 percent of the lower of the volume weighted average price of the shares for the 15 day period prior to the payment date and the volume weighted average price of the Common Shares for the five day period prior to the payment date, subject to certain restrictions. To the extent that the applicable price determined under the above formula is less than 85 percent of the volume weighted average price of the Common Shares for the five day period prior to the payment date then, in lieu of delivering Common Shares, the Company will make a cash payment to the holders of the Unsecured Notes. Additional details regarding the terms of the Unsecured Notes are contained in the material change report of the Company dated June 24, 2013, a copy of which is available at www.sedar.com.
In June 2013, the Company recovered a net amount of approximately $15 million related to its Company 49% working interest in the Qara Dagh Block in Kurdistan. In November 2012, the Company and its consortium partners had entered into an agreement with the Kurdistan Regional Government to surrender their collective interests in the block. Pursuant to the agreement, none of the consortium partners will have any future obligations or liabilities with regard to the original production sharing agreement. .
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. General information
Niko Resources Ltd. (the "Company") is a limited company incorporated in Alberta, Canada. The addresses of its registered office and principal place of business is 4600, 400 - 3 Avenue SW, Calgary, AB, T2P4H2. The Company is engaged in the exploration for and development and production of oil and natural gas in the countries listed in note 26. The Company's common shares and convertible notes are traded on the Toronto Stock Exchange.
2. Basis of presentation and significant accounting policies
a. Statement of compliance
The financial statements have been prepared by management in accordance with International Financial Reporting Standards (IFRS). Issued by the International Accounting Standards Board (IASB).
The financial statements were approved by the board of directors and authorized for issue on July 8, 2013.
b. Basis of preparation and presentation
The financial statements have been prepared on the historical cost basis except for the revaluation of certain financial instruments as described in sections g. and o. of this note.
The consolidated financial statements are presented in US dollars and all values are rounded to the nearest thousand dollars ($000), except where otherwise indicated.
Most Popular Stories
- Boehner Lashes Out Against Ted Cruz, Far Right
- Hawaii Official Who Release Obama Certificate Only Victim of Plane Crash
- Ford Plans New Cars, Jobs in 2014
- 'Rape Insurance' Bill Passes in Michigan
- Ted Cruz Coloring Book Selling Briskly
- Holiday Shopping Off to a Slow Start This Season
- Gold, Silver Slide on Prospects of Fed Exit
- Kim Jong Un's Uncle Executed
- Grizzly Bears Could Be Taken Off Endangered List
- TFA Recruiting DACA Recipients