Niko Resources Ltd.

Niko Resources Ltd.

January 10, 2005 08:45 ET

Niko Resources Ltd.: Chattak-2 Operational Update




JANUARY 10, 2005 - 08:45 ET

Niko Resources Ltd.: Chattak-2 Operational Update

CALGARY, ALBERTA--(CCNMatthews - Jan. 10, 2005) - Niko Resources Ltd.
(TSX:NKO) Further to the Chattak-2 Drilling Update issued Friday January
7th, 2005, Niko advises that the uncontrolled release of dry sweet gas
is continuing at a substantially reduced rate of flow. The site is
secure and no injuries have occurred.

Some of the equipment on site including the drilling rig has been
damaged beyond repair, and equipment including another rig is being
mobilized to site to stop the uncontrolled flow of gas and resume
drilling operations.

The gas is from one of the newly targeted gas reservoirs in the Chattak
structure. Despite this incident, this gas flow confirms the potential
for commercial gas reserves from the Chattak structure. Further, Niko
believes that no significant damage will have occurred to this
reservoir. Once remedial operations are complete which is currently
anticipated to take 6 - 8 weeks, drilling will continue on the original

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 S. Sampson
    Chairman of the Board, President and Chief Executive Officer
    (403) 262-1020
    Niko Resources Ltd.
    Richard M. Alexander
    Vice President, Finance
    (403) 262-1020