Niko Resources Ltd.

Niko Resources Ltd.

January 11, 2005 08:45 ET

Niko Tests 6000 BOPD in Latest Well at Hazira, India




JANUARY 11, 2005 - 08:45 ET

Niko Tests 6000 BOPD in Latest Well at Hazira, India

CALGARY, ALBERTA--(CCNMatthews - Jan. 11, 2005) - Niko Resources Ltd.
(TSX:NKO) is pleased to announce the third well drilled, Hazira OS-3,
from the offshore platform tested oil from a zone at 1,200 metres with a
flowing rate of 6,000 BOPD on a 80/66" choke and a pressure of 442 psi.

The oil zone has now been successfully tested in five wells and can be
identified on logs in nine wells in the Hazira field. Further
delineation will occur with the drilling of the next three wells from
the platform. Once the areal extent and reserves are determined,
development plans to produce and market this oil will be formulated.
OS-3 will now be completed as a gas well and immediately put on

Niko Resources Ltd. is the operator of this field with a 33% working

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
    or visit the Company's website at