Niko Resources Ltd.
TSX : NKO

Niko Resources Ltd.

January 14, 2011 06:30 ET

Niko Announces Double Farmout With Repsol Exploration SA

CALGARY, ALBERTA--(Marketwire - Jan. 14, 2011) - Niko Resources Ltd. ("Niko") (TSX:NKO) is pleased to announce that it has reached a Farmout agreement with Repsol Exploration SA ("Repsol") in which Repsol, through its subsidiaries, will become a joint venture participant in both the East Bula and Seram Production Sharing Contracts (PSC) in Indonesia. As a result of the agreement, Niko as operator will hold 55% working interest and Repsol will hold 45% working interest on each PSC. The transfer of interest has been approved by the Government in Indonesia.

The Seram PSC was signed by Niko in November 2008 while the adjacent East Bula PSC was signed by Niko in November 2009. Niko as the operator of both blocks has completed a 4,760 km 2D seismic survey and a 200 square km 3D seismic survey.

Repsol and Niko are also joint venture partners in three recently awarded blocks; Cendrawasih Bay II, III, and IV. These three blocks were signed under a Production Sharing Contract on May 18th, 2010. Niko as the operator of Cendrawasih Bay III and IV has already completed a 5,240 km 2D seismic survey.

January 14, 2011

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 & CEO
    (403) 262-1020
    or
    Niko Resources Ltd.
    Murray Hesje
    VP Finance & CFO
    (403) 262-1020
    www.nikoresources.com