Niko Resources Ltd.

Niko Resources Ltd.

March 13, 2007 08:45 ET

Niko Makes Three More Discoveries in East Coast Blocks KG-D6 and NEC-25

CALGARY, ALBERTA--(CCNMatthews - March 13, 2007) - Niko Resources Ltd. (TSX:NKO) is pleased to announce three new discoveries in their 2 blocks off the East Coast of India. These discoveries are in block D6 in the wells KG-D6-Q1 and KG-D6-P2 and in block NEC25 in the well NEC-25-A5.

In D6 the drilling of KG-D6-Q1 and KG-D6-P2 has been successfully completed. The KG-D6-Q1 well is located approximately 15 kilometers southwest of the AA-1 gas discovery and the KG-D6-P2 well is approximately 6km west of the P1 gas discovery. The KG-D6-Q1 well encountered pay zones in the distal part of the earlier established channel levee systems in the KG D6 block. Based on the evidence of data obtained from logging and Modular Dynamic Testing (MDT), the occurrence of hydrocarbons in the clastic reservoirs in the above sequence was proven. The second well, KG-D6-P2, encountered two gas bearing zones. Both these zones are channel fan complexes. The data obtained from logging and MDT corroborates the presence of hydrocarbons. These two wells demonstrate the continued high prospectivity of the block. Both wells have been notified to the Directorate General of Hydrocarbons (DGH) and concerned authorities as new discoveries.

In addition to the above discoveries, Niko is pleased to announce yet another discovery in block NEC-25 in the well NEC-25-A5. The well lies in the Mahanadi Basin approximately 12 kilometers northwest of the earlier natural gas discovery NEC-25-A1 (Dhirubhai 9). Based on the evidence of data obtained from logging and MDT, the presence of hydrocarbons is confirmed. This well has been notified to the DGH and concerned authorities as a new discovery, namely Dhirubhai 32, which is the seventh consecutive discovery in this block.

The commerciality of the above discoveries is currently under evaluation. These recent discoveries demonstrate the further upside potential of the blocks in the Krishna Godavari and Mahanadi Basins.

March 13, 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 S. Sampson
    Chairman of the Board, President and Chief Executive Officer
    (403) 262-1020
    Niko Resources Ltd.
    Murray Hesje
    Vice President, Finance
    (403) 262-1020