Niko Resources Ltd.

Niko Resources Ltd.

November 14, 2006 09:08 ET

Niko Resources Ltd.: Drilling Update D6 Block

CALGARY, ALBERTA--(CCNMatthews - Nov. 14, 2006) - Niko Resources Ltd. (TSX:NKO) would like to announce that the well MB-1 has reached TD of 3080 meters and encountered good quality reservoir sands. Formation evaluation suggests that these sands are not charged with hydrocarbons. However, the well has provided significant geological information, which would help optimizing the development of the multiple Cretaceous oil prospects. Subsequently, the well has been plugged and abandoned. MB-1 was the shallowest Cretaceous structure identified in the D6 block. The MB-1 prospect is separated structurally from the MA-1 discovery and the drilling results of well MB-1 do not have any bearing on the reserves of the MA-1 structure. Further evaluation of the multiple Cretaceous prospects with oil potential, which have been identified in D6, will continue with the drilling of an appraisal / exploratory well MA-2 which is located within the MA-1 prospect. The MB-1 well was the 20th well drilled to date in the D6 block.

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.
    Murray Hesje
    VP Finance & CFO
    (403) 262-1020