Niko Resources Ltd.

Niko Resources Ltd.

July 27, 2005 08:36 ET

Niko Resources Awarded Highly Prospective Blocks

CALGARY, ALBERTA--(CCNMatthews - July 27, 2005) - Niko Resources Ltd. (TSX:NKO) is pleased to announce it has been awarded two blocks under the most recent round of bidding of the Government of India's New Exploration Licensing Policy, NELP V.

Niko has a 100% working interest in the 236,379 acre onland block CY-ONN-2003/1 (Cauvery) located in the Cauvery basin on the southeastern coast of India. The Cauvery block is adjacent to several producing oilfields and is located within the Cauvery Delta. Niko's Phase I commitment, which must be executed over the next three years, consists of shooting approximately 550 square kilometers of 3D seismic and the drilling of five wells.

Niko and its partner, Reliance Industries Limited (Reliance), have also been awarded the 4,211,350 acre deep water block MN-DWN-2003/1 (D-4) located in the Mahanadi basin off the northern part of the east coast of India. Niko has a 15% working interest in this block, of which Reliance will be the operator. "The high level of bidding for this most sought after block is indicative of the potential" states Edward Sampson, Company President.

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 Sampson
    Chairman of the Board, President & Chief Executive Officer
    (403) 262-1020
    Niko Resources Ltd.
    Richard Alexander
    Vice President Finance
    (403) 262-1020