Niko Resources Ltd.
TSX : NKO

Niko Resources Ltd.

November 14, 2007 09:15 ET

Niko Resources Announces 2nd Quarter Financial Results

CALGARY, ALBERTA--(Marketwire - Nov. 14, 2007) - Niko Resources Ltd. (TSX:NKO) reports results for the three and six months ended September 30, 2007.

OPERATIONAL and FINANCIAL HIGHLIGHTS

FINANCIAL

- In the process of executing loan agreement for US$550 million

- Raised equity financing of $500 million

- Cash balance at the end of the quarter of $562 million

- Wrote off Thailand assets of $26.0 million

OPERATIONAL

- Development plan underway for a further eight discoveries in the prolific D6 Block

- D6 gas development scheduled to start up in the third calendar quarter of 2008 at a rate of 2.8 Bcf per day (280 MMcf per day net to the Company)

- D6 oil development scheduled to start up in the third calendar quarter of 2008 at a rate of 40,000 bbls per day (4,000 bbls per day net to the Company)

- Two unsuccessful wells in Cauvery, however, balance of 915 square kilometers of 3D seismic has now been completed

- Pakistan blocks provisionally awarded to the Company



Three months ended Six months ended
September 30, September 30,
2007 2006 2007 2006
FINANCIAL
(thousands of dollars,
except per share amounts
and number of shares)
Petroleum and natural gas sales 28,763 28,129 56,715 57,756
Funds from operations 26,034 15,535 39,378 30,235
Per share, diluted ($) 0.56 0.39 0.87 0.77
Net (loss) (19,387) (11,117) (25,555) (22,743)
Per share, basic and diluted ($) (0.43) (0.28) (0.58) (0.58)
Capital expenditures (74,146) (30,240) (136,944) (39,537)
Total assets (end of period) 1,104,033 574,973 1,104,033 574,973
Shareholders' equity
(end of period) 1,066,572 520,218 1,066,572 520,218
Weighted average common shares
outstanding 44,888 39,255 44,023 38,893
Common shares outstanding
(end of period)
Basic (thousands) 48,092 40,602 48,092 40,602
Diluted (thousands) 51,561 44,105 51,561 44,105

OPERATIONS
Average daily production
Oil and condensate (bbls/day) 296 261 331 313
Natural gas (Mcf/day) 85,623 84,934 85,064 86,918
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Total combined (Mcfe/day) 87,400 86,500 87,050 88,797
Revenues, royalties and operating
costs
Gross revenue received ($/Mcfe) 3.58 3.53 3.56 3.55
Royalties ($/Mcfe) (0.17) (0.21) (0.18) (0.22)
Profit petroleum ($/Mcfe) (0.71) (0.65) (0.95) (0.62)
Operating costs ($/Mcfe) (0.33) (0.34) (0.37) (0.37)
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Operating netback ($/Mcfe) 2.37 2.33 2.06 2.34
Drilling activity
Gross wells 8 2 12 2
Net wells 2.1 1.2 3.3 1.2
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The selected financial information is prepared in accordance with Canadian generally accepted accounting principles (GAAP), except for "funds from operations", "funds from operations per share - diluted" and "operating netback", which are used by the Company to analyze the results of operations and liquidity. By examining funds from operations, the Company is able to determine its ability to fund future capital projects and investments. Funds from operations is calculated as cash flows from operating activities prior to the change in operating non-cash working capital and the change in long-term accounts receivable. Funds from operations is not an alternative to cash flow from operating activities as determined in accordance with Canadian GAAP and may not be comparable with the calculation of similar measures for other companies. Funds from operations per share - diluted is calculated by dividing the funds from operations by the weighted average number of diluted shares outstanding. The weighted average number of diluted shares outstanding as used in the calculation of funds from operations per share - diluted is not presented in the notes to the financial statements at September 30, 2006 and 2007. The weighted average number of diluted shares outstanding as used in the calculation of funds from operations per share - diluted is 46,293 and 45,380 (thousands) for the three and six month periods ended September 30, 2007, respectively (2006 - 39,809 and 39,441 (thousands), respectively). Operating netback is calculated as the average sales price per thousand cubic feet equivalent (Mcfe), less royalties, profit petroleum and operating expenses per Mcfe, and represents the before-tax cash margin directly related to production for every Mcfe sold.

Operations Review

OPERATIONS UPDATE

India

D6 Block

Exploration: The R1 well, which finished drilling in May 2007, was declared a gas discovery. With the results of this well, the Company has had 20 successful exploration wells out of 21 drilled to date. The ME-1 Cretaceous exploration well is currently being drilled.

Conceptual studies are underway for the development of a further eight of these gas discoveries in the prolific D6 Block. The discoveries are adjacent to the Dhirubhai 1 and 3 gas fields that are currently under development. It is intended that these satellite discoveries be tied back to the Dhirubhai 1 and 3 facilities. Fifteen more prospects have been identified in deeper areas of the block to explore further upside potential.

Gas Development: Seven development wells, A6, B4, B6, B11, B15, A13 and B8, have been drilled bringing total development wells to 17 of 18 planned wells in the Dhirubhai 1 and 3 development plan.

The development of discoveries Dhirubhai 1 and 3 is on schedule for production of gas during the third calendar quarter of 2008. Milestones achieved:

- 94 percent of the wells have been drilled with the remaining to be completed by the end of calendar 2007. Well completions are expected to commence in calendar 2007;

- 50 percent of off-shore facilities have been completed. Line pipes and bends have been manufactured and shipped; and

- 55 percent of on-shore facilities have been completed. Piles and the construction of pipe racks have been completed.

The development plan for the Dhirubhai 1 and 3 gas fields has provisions for the initial natural gas production rate of 2.8 Bcf/d (280 MMcf/d net to the Company) envisaged within the first year of production operations, which will double India's current indigenous gas production. The Phase I initial field development costs are estimated at US$5.2 billion (US$520 million net to the Company). The Company has spent US$125.5 million to September 30, 2007 of the expected US$520 million estimated for the project. The approved field development plan of Dhirubhai 1 and 3 provides flexibility in the critical components of the facilities to facilitate gas production of up to 4.2 Bcf/d (420 MMcf/d net to the Company).

In September 2007, the Government of India approved the pricing formula for the sale of gas to be produced from the D6 Block, which results in a gas price of US$4.20 per MMBtu at a crude price of US$60 per barrel or above. The government decision upholds the provisions of the production sharing contract (PSC) under the government's New Exploration and Licensing Policy (NELP).

Oil Development: In August 2007, development plans for the Cretaceous oil discovery (MA) were submitted to the Government of India for approval based on the positive results of the two oil wells drilled in 2006. Drilling of the first two horizontal development wells, MA4H and MA3H were completed in October and November 2007, respectively. More oil producers and gas injector wells are planned to be drilled to complete the oil development plan.

The development and fast-track implementation of the Cretaceous oil discovery (MA) is progressing as per the plan. Oil production is expected to commence in the third calendar quarter of 2008 with an estimated peak production of 40,000 bbls/d (4,000 bbls/d net to the Company).

Rigs: Two deepwater rigs are in operation on the D6 Block. The C. Kirk Rhein Jr. rig is currently drilling the ME-1 Cretaceous exploration well. The Deepwater Frontier rig has finished drilling the MA3H horizontal oil development well. Additional rigs have been contracted by the operator and the D-534 drillship is expected to commence drilling on the D6 Block in the fourth quarter of calendar 2007.

NEC-25 Block - The Deepwater Driller-4 rig is expected to arrive at the NEC-25 block in the fourth calendar quarter of 2007 for drilling of the third well of the planned drilling program. Geotechnical and geophysical studies have been completed with results used in the selection of drilling locations in the upcoming campaign. The offshore environmental study has been completed and onshore studies are in progress. Development plans for the six gas discoveries that have been declared commercial by the Indian regulatory authorities have been prepared, approved by the Operating Committee and submitted to the Government of India.

Cauvery - The first well drilled in the block, Agraharam-01, reached a total depth of 1,900 metres in August 2007. The second well, Gahapavanam-01, reached a total depth of 2,395 metres in October 2007. Petrophysical analysis of the electric logs indicated no significant hydrocarbons were encountered in the wells. The results from these wells combined with regional drilling results and the interpretation of the 3D seismic acquired in Cauvery in the second half of 2007 will be integrated and analyzed for selection of three further drilling locations.

The 2007 Cauvery 3D seismic program was completed in September 2007. A total of 915 square kilometres of seismic data have now been acquired on the Block. The seismic is currently being processed.

D4 Block - In the deepwater Block MN-DWN-2003/1 (D4), located in the Mahanadi Basin, analysis of the 2,365-kilometre 2D seismic acquisition program was completed. Based on the analysis, a further 2,800-kilometre 2D seismic program and a 3,600-square-kilometre 3D seismic program have been designed and are scheduled to be acquired in early calendar 2008. Once the new seismic data is processed and interpreted, initial drilling locations will be selected as early as calendar 2008. Drilling is expected to follow shortly thereafter.

Hazira - The Hazira field is currently producing 62 MMcf/d (21 MMcf/d net to the Company). Workovers for onshore and offshore wells are ongoing.

Surat - Current production from the Surat field is approximately 10 MMcf/d. A three-well drilling program is planned for calendar 2008.

Bangladesh

Block 9 - Two wells in Block 9, Bangora-1 and Bangora-5, are currently producing at a rate of over 70 MMcf/d (47 MMcf/d net to the Company). Production rates were lower in October 2007 during a planned pressure survey. Regular production has resumed and is currently facility-constrained at the current production rate. Facilities upgrades are expected to commence in the current year with production targets increasing to nearly 100 MMcf/d (60 MMcf/d net to the Company) by mid-2008 and to 120 MMcf/d (72 MMcf/d net to the Company) by the end of calendar 2008. Further drilling prospects have been identified south of the producing Bangora structure on the 40-kilometre-long Bangora-Lalmai anticline. Drilling is planned to commence on these prospects when a drilling rig is available.

Feni and Chattak - Production from the Feni field is 5 MMcf/d. Future drilling activities at Feni and Chattak remain postponed pending resolution of overdue payment for gas owed to the Company by the Government of Bangladesh.

Thailand

Two unsuccessful workovers were completed during the period.

Pakistan

Four large offshore exploration blocks in the Indus Basin of southern Pakistan have been provisionally awarded to Niko. The total area of these blocks is 9,920 square kilometers. The Company is currently negotiating a Production Sharing Agreement (PSA) with the government.

Production

The following table displays the actual production for the first six months of fiscal 2008 and the forecast production for fiscal 2008. The Company revises the forecast on a quarterly basis and any changes are incorporated in the table below.



Net Production Six months ended Lower Estimate Upper Estimate
(Daily average) September 30, 2007 Fiscal 2008 Fiscal 2008
Natural Gas (MMcf/d)
India
Hazira 24 20 25
Surat 10 8 10
Bangladesh
Block 9 46 45 50
Feni 5 3 5
Oil (bbls/d)
India
Hazira 236 200 210
Other (1) 1 - -
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Total (MMcfe/d) 87 77 91
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(1) Less than 2.5 percent of total corporate volumes and revenues are from
Canadian oil, Bangladeshi condensate and Hazira condensate production.
Therefore, the results from Canadian oil, Bangladeshi condensate and
Hazira condensate production are included in "Other", are not discussed
separately and a forecast is not prepared for the items included in
"Other".


Operating Expense Outlook

For the three and six months ended September 30, 2007, operating expenses averaged $0.33/Mcfe and $0.37/Mcfe, respectively, and are anticipated to average $0.40 to $0.42/Mcfe in fiscal 2008.

Capital Expenditures

The following table displays capital spending during the six months ended September 30, 2007 and forecast capital spending for fiscal 2008:



Exploration and Development Spending
(net to the Company) Six months ended Estimated
(millions of dollars) September 30, 2007 fiscal 2008
India
Cauvery 19.0 20 - 22
D4 - 5 - 7
D6 102.2 305 - 315
Hazira 0.9 3 - 5
NEC-25 4.3 7 - 9
Surat - 3 - 5
----------------------------------------------------------------------------
Bangladesh
Block 9 4.7 9 - 11
Chattak 1.4 2 - 3
Feni 0.1 0.1
Thailand 3.7 3.7
----------------------------------------------------------------------------
Other 0.6 0.6
----------------------------------------------------------------------------
Total 136.9 358 - 381
----------------------------------------------------------------------------


India

Cauvery - The Company was awarded the Cauvery Block, which is located in southern Tamil Nadu, in the NELP-V bidding round in 2005. The block is in the exploration phase and has mainly oil potential.

Capital expenditures in the quarter and year to date were $12.0 million and $19.0 million, respectively. In the quarter, costs were incurred drilling the first well in the block, commencement of drilling on the second well and continuation of the planned 3D seismic. The remaining capital expenditures related to the minimum work program are estimated at US$7.5 million, which must be spent within three years of the issuance of the Production Exploration Licence. Remaining capital expenditures forecast for fiscal 2008 include completion of the 3D seismic program and the conclusion of drilling of the second exploration well.

D4 - The Company was awarded a 15 percent interest in the D4 Block, located in the Mahanadi Basin offshore the east coast of India, as part of the NELP-V bidding round in 2005. The block, which is currently in the exploration phase, encompasses more than 17,000 square kilometres and contains similar play types to the natural gas discoveries made by Reliance and Niko in the D6 and NEC-25 blocks.

A 2,365-kilometre 2D seismic acquisition program was completed in the D4 Block and the data has been processed. Evaluation of the data set is ongoing and a further 2,800-kilometre 2D seismic program is scheduled to commence in early calendar 2008, along with a 3,600-square-kilometre 3D seismic program. A drilling date for the first well is yet to be set. The estimated cost of the Phase I commitment, which includes seismic and drilling three exploration wells, totals US$97.6 million (US$14.6 million net to the Company), which must be expended by September 2009.

D6 - The Company has a 10 percent working interest in the 7,645-square-kilometre D6 Block. The block was awarded to the Company and its partner in the Government of India's first international bid round in 1999. Development of the Dhirubhai 1 and 3 natural gas fields is ongoing in addition to continued exploration on this block.

Conceptual studies are underway for the development of a further eight of these gas discoveries in the prolific D6 Block. The discoveries are adjacent to the Dhirubhai 1 and 3 gas fields that are currently under development. It is intended that these satellite discoveries be tied back to the Dhirubhai 1 and 3 facilities. Fifteen more prospects have been identified in deeper areas of the block to explore further upside potential.

Seven development wells, A6, B4, B6, B11, B15, A13 and B8, have been drilled bringing total development wells to 17 of 18 planned wells in the Dhirubhai 1 and 3 development plan.

The development of discoveries Dhirubhai 1 and 3 is on schedule for production of gas during the third calendar quarter of 2008. Milestones achieved:

- 94 percent of the wells have been drilled with the remaining to be completed by the end of calendar 2007. Well completions are expected to commence in calendar 2007;

- 50 percent of off-shore facilities have been completed. Line pipes and bends have been manufactured and shipped; and

- 55 percent of on-shore facilities have been completed. Piles and the construction of pipe racks have been completed.

The development plan for the Dhirubhai 1 and 3 gas fields has provisions for the initial natural gas production rate of 2.8 Bcf/d (280 MMcf/d net to the Company) envisaged within the first year of production operations, which will double India's current indigenous gas production. The Phase I initial field development costs are estimated at US$5.2 billion (US$520 million net to the Company). The Company has spent US$125.5 million to September 30, 2007 of the expected US$520 million estimated for the project. The approved field development plan of Dhirubhai 1 and 3 provides flexibility in the critical components of the facilities to facilitate gas production of up to 4.2 Bcf/d (420 MMcf/d net to the Company).

In September 2007, the Government of India approved the pricing formula for the sale of gas to be produced from the D6 Block, which results in a gas price of US$4.20 per MMBtu at a crude price of US$60 per barrel or above. The government decision upholds the provisions of the production sharing contract (PSC) under the government's New Exploration and Licensing Policy (NELP).

In August 2007, development plans for the Cretaceous oil discovery (MA) were submitted to the Government of India for approval based on the positive results of the two oil wells drilled in 2006. Drilling of the first two horizontal development wells, MA4H and MA3H were completed in October and November 2007, respectively. More oil producers and gas injector wells are planned to be drilled to complete the oil development plan.

The development and fast-track implementation of the Cretaceous oil discovery (MA) is progressing as per the plan. Oil production is expected to commence in the third calendar quarter of 2008 with an estimated peak production of 40,000 bbls/d (4,000 bbls/d net to the Company).

Capital expenditures in the quarter and year to date were $56.0 million (net) and $102.2 million (net), respectively. The majority of the spending during the quarter was for development including drilling wells A6, A13, B4, B6, B11, B15, the commencement of drilling well B-8 and additional work on the plant and facilities. There was also spending for drilling of the MA4H and commencement of the MA3H oil development wells and seismic costs related to the ongoing exploration. In addition to the spending described above, year to date spending includes an exploration well, R1, and a development well, A5. Forecast activity for fiscal 2008 includes the continuation of the gas development for the Dhirubhai 1 and 3 natural gas fields, development of the oil field and additional exploration drilling.

Hazira - The Company has a 33 percent working interest in the 50-square-kilometre Hazira onshore and offshore block on the west coast of India, which lies adjacent to a large industrial corridor about 25 kilometres southwest of the city of Surat. Gas production began from this field in 1996 and oil production commenced in March 2006.

Capital expenditures in the quarter and year to date were $0.5 million (net) and $0.9 million (net), respectively, primarily related to workover costs for natural gas wells. Capital expenditures forecast for the remainder of fiscal 2008 are primarily for recompletions of existing wells.

Surat - The Company was awarded rights to the Surat Block in July 2001 and after completion of the exploratory phase retained a development area of 24 square kilometres containing the Bheema and NSA shallow natural gas fields. These fields have been producing natural gas since April 2004. Forecast activity for fiscal 2008 relates to drilling and tie-in of three planned wells.

NEC-25 - The Company has a 10 percent working interest in the NEC-25 Block, which covers 10,755 square kilometres in the Mahanadi Basin off the east coast of India, awarded to the Company and its partner in the Government of India's first international bid round in 1999. The Company and its partner have capital commitments for Phase II exploration for seismic and two exploration wells as per the PSC and have drilled sufficient wells to meet the commitment.

Capital expenditures in the quarter and year to date were $1.5 million and $4.3 million (net to the Company), respectively, primarily on preparation for future drilling activities. A rig is expected to arrive in the fourth calendar quarter of 2007 to commence drilling of the third well of the planned eight-well drilling program. Development plans for the six discoveries that have been declared commercial by the Indian regulatory authorities are being prepared.

Bangladesh

Block 9 - In October 2003 the Company acquired a 60 percent interest in Block 9, a 6,880-square-kilometre onshore block which encompasses the capital city of Dhaka. This field began natural gas production in May 2006 and commerciality was declared in December 2006. The Company and its partner have capital commitments for Phase I exploration, which includes seismic and the drilling of three wells and, in certain circumstances, up to 10 wells. The Company and its partner have completed the seismic and have drilled six wells that apply towards the commitment.

Capital expenditures during the quarter and year to date were $2.0 million and $4.7 million (net to the Company), respectively, primarily for the rig demobilization after completion of the Bangora-5 well, well testing and commencement of upgrading the production facilities. Planned capital activity for the remainder of fiscal 2008 includes testing of existing wells and continued work upgrading the facilities.

Feni - The Feni field covers 43 square kilometres and is located 6 kilometres west of the main natural gas line to Chittagong. The Company has been producing natural gas from the field since November 2004. Future drilling activities at Feni have been postponed pending resolution of overdue payments for gas owed to the Company by the Government of Bangladesh.

Chattak - The Chattak structure covers 376 square kilometres and rights to this block were obtained in October 2003. The upper fault block to the west previously produced from one well, while the down-thrown eastern fault block has not been drilled.

During the quarter and year to date, $0.8 million and $1.4 million, respectively, was spent primarily on carrying costs of the block. Future drilling activities at Chattak have been postponed pending further developments in the various disputes between the Company and the Government of Bangladesh.

Thailand

In fiscal 2006 Niko acquired a 50 percent equity stake in a production and exploration block in northern Thailand, which includes a development area, Mae Soon, and an exploration area, Fang.

To date, the Company has performed initial recompletions on five existing wells, resulting in little or no fluid production, and has drilled three unsuccessful exploration wells. As a result, the Company has chosen to take a write-down of $26.0 million.

OVERALL PERFORMANCE

Funds from operations

The reported funds from operations for the quarter were $26.0 million compared to $15.5 million in the prior year's quarter. Production from Block 9 contributed to a 23 percent increase in production for the quarter and more than replaced the forecast natural declines at Hazira and Feni. However, petroleum and natural gas sales net of royalty and profit petroleum only increased by $0.3 million as production from Block 9 receives a lower price and attracts higher profit petroleum than production from Hazira and Surat.

There was a $5.1 million positive impact on funds from operations as the Company earned interest income of $5.3 million in the current quarter compared to interest income net of interest expense of $0.2 million in the prior year's quarter.

The Company recognized an income tax recovery from re-estimating prior year's tax filings and current-year income taxes applying the Surat tax holiday deduction. This adjustment net of current-quarter tax expense for Hazira and Surat resulted in an increase in reported funds from operations of $5.5 million.

Year to date, reported funds from operations were $39.4 million compared to $30.2 million in the comparative prior year's period. Profit petroleum expense increased by $5.1 million over the prior year's period. This was mainly due to resolution of a previously disclosed dispute regarding profit petroleum of US$3.7 million (Cdn$4.0 million). The remaining change in profit petroleum was largely due to the increase in proportion of Block 9 volumes which has higher profit petroleum rates than other producing fields. There was a $6.0 million increase in interest income related to larger cash balances. There was an improvement in realized foreign exchange of $2.1 million, primarily due to the settlement of Indian rupee-denominated receivables and payables created by the strengthening of the rupee compared to the U.S. dollar. The Company paid the remaining balance of its debt in October 2006 and, as a result, there was no interest paid year to date compared to $1.5 million paid in the prior year's period. Income taxes improved funds from operations by $5.1 million as the Company recognized an income tax recovery from re-estimating prior year's tax filings and current-year income taxes applying the Surat tax holiday deduction. Finally, there was a decrease in revenues, net of royalties, of $0.3 million as the forecast natural declines in production from the Hazira and Feni fields more than offset increases in production from Block 9 and increased prices in Hazira and Surat.

Net loss

The reported loss for the quarter is $19.4 million compared to a loss of $11.1 million in the prior year's quarter. An increase in funds from operations, as discussed above, had the effect of decreasing the loss quarter-over-quarter by $10.5 million. The items discussed below net to cause an $18.8 million increase in non-cash charges.

The decrease in the Company's stock-based compensation expense of $1.7 million is due to the fewer number of options being expensed in the quarter.

There was an unrealized foreign exchange loss in the period of $5.5 million compared to a gain of $0.2 million in the prior year's quarter. There was an unrealized foreign exchange loss incurred on the translation of U.S. dollar cash to Canadian dollars due to the strengthening of the Canadian dollar against the U.S. dollar, which was partially offset by an unrealized foreign exchange gain incurred on the translation of Indian rupee-denominated receivables due to the strengthening of the Indian rupee against the U.S. dollar.

The Company wrote-down Thailand assets during the quarter of $26.0 million.

Debt issue costs of $0.7 million were expensed in the prior year's quarter with no corresponding amount in the current quarter, resulting in a positive effect on net income.

Depletion, depreciation and accretion expense for the quarter decreased by $10.6 million from the prior year's quarter. On a per Mcfe basis, this was a reduction of 51 percent. There was a 53 percent decrease in the rate per Mcfe in India as a result of an increase in the Hazira and Surat reserves at March 31, 2007 and a decrease in the remaining costs being depleted due to a translation adjustment in the fourth quarter of fiscal 2007. The 24 percent decrease in the Bangladesh depletion rate was due to an increase in the reserves for Block 9 subsequent to the prior year's quarter, partially offset by an increase in the cost base due to capital additions.

Year to date, the Company reported a net loss of $25.6 million compared to a loss of $22.7 million in the prior year's period. In addition to an increase in funds from operations, there was a decrease in stock-based compensation expense of $1.0 million, an increase in the unrealized foreign exchange loss of $9.9 million, an asset impairment of $26.0 million, a decrease in debt issue costs of $0.7 million and a decrease in depletion expense of $22.3 million.

November 14, 2007

Certain statements in this press release are forward-looking statements. Specifically, this press release contains forward-looking statements relating to management's approach to operations, estimates of future sales, production and deliveries, business plans for drilling and development, estimated amounts and timing of capital expenditures, anticipated operating costs, royalty rates, cash flows, transportation plans and capacity, anticipated access to infrastructure or other expectations, beliefs, plans, goals, objectives, assumptions and statements about future events or performance. The reader is cautioned that the assumptions used in the preparation of such information, although considered reasonable by Niko at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Such factors include, but are not limited to: general economic, market and business conditions; industry capacity; competitive action by other companies; fluctuations in oil and gas prices; the results of exploration and development drilling and related activities; the uncertainty of estimates and projections relating to productions, costs and expenses; uncertainties as to the availability and cost of financing; fluctuations in currency exchange rates; the imprecision in reserve estimates; risks associated with oil and gas operations, such as operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the weather in the Company's area of operations; the ability of suppliers to meet commitments; changes in environmental and other regulations; actions by governmental authorities including changes in laws and increases in taxes; decisions or approvals of administrative tribunals; risks in conducting foreign operations (for example, political and fiscal instability or the possibility of civil unrest or military action in countries such as India and Bangladesh); the effect of acts of, or actions against international terrorism; and other factors, many of which are beyond the control of Niko. There is no representation by Niko that the actual results achieved during the forecast period will be the same in whole or in part as those forecast.

Contact Information

  • Niko Resources Ltd.
    Edward Sampson
    Chairman of the Board, President and CEO
    (403) 262-1020
    or
    Niko Resources Ltd.
    Murray Hesje
    CFO & Vice President Finance
    (403) 262-1020