Niko Resources Ltd.

Niko Resources Ltd.

February 27, 2008 09:00 ET

Niko Strikes Eighth Gas Discovery in NEC 25 Block

CALGARY, ALBERTA--(Marketwire - Feb. 27, 2008) - Niko Resources Ltd. (TSX:NKO) is pleased to announce a new gas discovery in the NEC 25 block located in the Mahanadi offshore basin, off the Orissa coast in the Bay of Bengal. This shallow water block covering an area of 10,775 sq. km. in water depths ranging between 20-600 meters was awarded under the bidding round of NELP I. Niko holds a 10% interest in the block.

This is the eighth discovery in the block. As previously announced, development plans have been submitted to the Directorate General of Hydrocarbons for approval.

The well NEC 25-J1 was drilled on the southern portion of the new 2007 3D seismic, with the objective of exploring upper Miocene slope sands in the deeper part of the block. This well was drilled at a water depth of 478 meters to the target depth of 2926 meters. For the first time in this basin, the well encountered high quality multi-darcy gas bearing reservoir sands in the interval 2484 - 2495.5 meters.

J1 is part of an ongoing exploration program in NEC 25. Two rigs are currently drilling exploration wells B3 & A9A. Upon completion of these wells, additional prospects will be drilled. Well results are being integrated into the evaluation of NEC 25 and future drilling locations are being assessed.

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