Niko Resources Ltd.
TSX : NKO

Niko Resources Ltd.

September 30, 2015 08:59 ET

Niko Provides Update on Indian Gas Price

CALGARY, ALBERTA--(Marketwired - Sept. 30, 2015) - Niko Resources Ltd. ("Niko" or the "Company") (TSX:NKO) provides the following update on the price for natural gas sales from the D6 Block in India:

Natural Gas Price for October 1, 2015 to March 31, 2016

In accordance with the New Domestic Natural Gas Guidelines, 2014, (the "Guidelines") issued in October 2014, the Government of India ("GOI") has issued a notification that the price for the period of October 1, 2015 to March 31, 2016 is $3.82 / MMbtu based on the gross calorific value of the sales gas (which equates to approximately $4.24 / MMbtu based on the net calorific value ("NCV") of the sales gas), representing a decrease of approximately 18 percent from the price for natural gas sales from April 1, 2015 to September 30, 2015.

Under the Guidelines, customers of the D6 Block in India pay for natural gas at the price notified by the GOI. For gas sales from the Dhirubhai 1 and 3 fields, the difference between this price and the earlier price of $4.20 / MMbtu NCV prior to the adoption of the Guidelines is credited to a gas pool account. The cash flow benefit of the revised price on the Company's share of gas sales from the D1 D3 fields is not expected to be available to the Company unless and until the cost recovery dispute with the GOI is resolved in the favour of the contractors of the D6 Block. For further information on the cost recovery dispute, please see note 27(c) to the Company's Condensed Interim Consolidated Financial Statements for the three month period ended June 30, 2015, filed on the Company's SEDAR profile at www.sedar.com.

As per the Guidelines, the announcement of the gas price for the period of April 1, 2016 to September 30, 2016 is expected to occur in March 2016.

Contact Information