ALBERTA

Niko Resources in talks to sell in non-core for $157M; stock soars 10%

03/27/2013 08:41 EDT | Updated 05/27/2013 05:12 EDT
CALGARY - Shares in Niko Resources Ltd. (TSX:NKO) shot up more than 10 per cent Wednesday after the oil and natural gas producer announced it was in advanced talks to sell certain non-core assets for $157 million.

Calgary-based Niko, which is active in Asia and elsewhere, says it hopes to sign definitive agreements with two separate purchasers by the end of April.

Niko did not say what specific assets were up for sale or who the potential buyers were, adding that further details would be provided as the transactions progress.

Meanwhile, the company said talks were also ongoing with other third parties regarding farm-outs and other non-core asset dispositions, "with offers on certain of these expected in the next few weeks."

On the Toronto Stock Exchange, Niko shares closed up 55 cents, or 10.44 per cent, at $5.82 on volume of more than 983,000 shares, a big jump from the usual daily volume of 575,000.

Niko has operations in India, Bangladesh, Indonesia, Madagascar, Pakistan and Trinidad.

MORE:Albertacp