Niko Resources Ltd.

Niko Resources Ltd.

July 09, 2008 09:00 ET

Niko Secures Exploration Acreage in Madagascar

CALGARY, ALBERTA--(Marketwire - July 9, 2008) - Niko Resources Ltd. (TSX:NKO) is pleased to announce the signing of a Heads of Agreement whereby it will farm-in to a production sharing contract (PSC) offshore Madagascar. Niko will become the operator of the Grand Prix PSC currently held by privately owned EnerMad Corporation.

Under terms of the agreement, Niko will earn a 75% interest by funding a 3,000 square kilometer 3-D seismic program and the drilling of up to two exploration wells.

The agreement is subject to the execution of definitive agreements and the approval of the Office of National Mines and Strategic Industries who act on behalf of the Republic of Madagascar. The PSC was signed effective November 26, 2007.

The PSC covers 16,845 square kilometers in water depths ranging from shallow water to 1,500m. The block is located down dip of a multi billion barrel oil deposit currently being developed. The block has multiple play types which will be targeted by the 3D seismic and the drilling programs covering Triassic, Jurassic, Cretaceous and Tertiary geologic ages. The joint venture is currently reprocessing 7,600 kilometers of 2D seismic to be followed by the 3,000 square kilometer 3D seismic program planned to commence in the first quarter of 2009.

July 9, 2008

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