CALGARY, ALBERTA -- (Marketwired) -- 06/13/13 -- Niko Resources Ltd. ("Niko" or the "Company") (TSX: NKO) is pleased to provide the following updates:
The Company has received the final draft of the reserve evaluations for the D6 and NEC-25 Blocks in India and Block 5(c) in Trinidad and Tobago, and the final reserve evaluation for Block 9 in Bangladesh from independent petroleum engineering firms. The evaluations for the D6 and NEC-25 Blocks in India and Block 5(c) in Trinidad and Tobago are subject to final review and signoff by the independent reserve engineering firm. These evaluations have been prepared in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities and the Canadian Oil and Gas Evaluation Handbook, with an effective date of March 31, 2013.
Highlights of the evaluations are as follows:
Total Company Reserves
-- approx. 160% increase to approx. 550 Bcfe of total proved reserves, resulting in a proved reserve replacement ratio of over 700%-- approx. 110% increase to approx. 800 Bcfe of total proved plus probable reserves, resulting in a proved plus probable reserve replacement ratio of over 850%-- approx. 90% increase to approx. $1.3 billion in estimated aggregate after-tax net present value of future net revenue attributable to proved plus probable reserves (discounted at 10 percent and estimated using forecast prices and costs)
Producing Fields in D6 Block in India
-- Virtually no revision to combined proved reserves on a gas equivalent basis-- Positive revisions to combined proved plus probable reserves
Block 9 in Bangladesh
-- Significant positive proved reserve revisions
Reclassification of Contingent Resources to Reserves
-- Significant proved and proved plus probable reserves additions for: -- R-Series and Satellite Area development projects in the D6 Block in India -- J-Series development project in the NEC-25 Block in India -- Endeavour/Bounty project in Block 5(c) in Trinidad and Tobago
Complete details of the Company's reserves and future net revenues attributable thereto will be contained in its Annual Information Form for the year ended March 31, 2013 which will be available on SEDAR at www.sedar.com on or before June 30, 2013.
"This is a very positive reserve story for Niko. And not reflected in these reserves is the recently announced MJ-1 gas condensate discovery in the D6 Block in India, which we feel could add significantly to future reserves," said Edward Sampson, Chairman, President and CEO of the Company.
The Pananda-1 exploration well in the North Makassar block, located offshore Kalimantan in the deepwater Makassar Strait of Indonesia, was drilled in water depth of 7,433 feet to a total depth of 19,685 feet in 50 days, and an 80 foot gas interval was identified in the upper section of the well. Drilling confirmed the presence of hydrocarbons in a previously untested Middle Miocene turbidite package in a basin floor setting. A thick package of over 700 feet of very fine grained distal turbidites was drilled, although poor reservoir properties indicate non-commerciality at this location. The Pananda-1 well is situated approximately 40 kilometres southeast of the Chevron-led deepwater development project at Gehem field.