Niko Resources Ltd.
TSX : NKO

Niko Resources Ltd.

December 19, 2011 06:30 ET

Niko Expands Its Acreage in Trinidad

CALGARY, ALBERTA--(Marketwire - Dec. 19, 2011) - Niko Resources Ltd. (TSX:NKO) is pleased to announce that the Trinidad and Tobago Government has approved the assignment to Niko of an interest in the Mayaro-Guayaguayare Bay block ("MG Block"). The MG Block lies just offshore of the southeast corner of the island of Trinidad and is adjacent to Niko's 2(ab) block to the northeast and Niko's Guayaguayare block to the southwest. The block lies between the onshore Beach, Navette, and Balata East producing oil fields and the offshore Galeota producing oil field.

Niko will operate and hold a 70% interest. The block covers 55,000 acres and is located in water depths of less than 25 meters.

Country Summary

When combined with previously announced acreage as summarized below, the company now has an interest in nine blocks in various proven hydrocarbon basins with potential for oil and/or gas discoveries. All blocks other than the MG Block (Exploration and Production License) are managed by Production Sharing Contracts.

Block Name
Area
PSC Date NKO Int Block Area (Sq. Kms)
Gross Net
Block 2AB † Offshore July-09 35.75 % 1,605 574
Guayaguayare - Shallow Horizon † Onshore/Offshore July-09 65 % 1,134 737
Guayaguayare - Deep Horizon † Onshore/Offshore July-09 80 % 1,190 952
Central Range - Shallow Horizon Onshore September-08 32.5 % 734 239
Central Range - Deep Horizon Onshore September-08 40 % 856 342
NCMA2 † Offshore April-11 56 % 1,019 571
NCMA3 † Offshore April-11 80 % 2,106 1,649
Block 4(b) † Offshore April-11 100 % 1,605 1,605
MG Block † Offshore July-07 70 % 223 156
† NKO operated

December 19, 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

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