CALGARY, ALBERTA -- (Marketwired) -- 07/09/13 -- Niko Resources Ltd. (TSX: NKO) ("Niko" or the "Company") is pleased to report its financial and operating results, including consolidated financial statements and notes thereto, as well as its managements' discussion and analysis, for the three months and year ended March 31, 2013. The operating results are effective July 8, 2013. All amounts are in U.S. dollars unless otherwise indicated and all amounts are reported using International Financial Reporting Standards unless otherwise indicated.
PRESIDENT'S MESSAGE TO THE SHAREHOLDERS
During fiscal 2013, the Company achieved significant growth in value. Substantial additions to reserves were booked related to development projects in India and in Trinidad and Tobago, contributing to a 166% increase in the Company's total proved reserves to 564 Bcfe and a 118% increase in the Company's total proved plus probable reserves to 821 Bcfe. Reflecting these significant additions, the estimated aggregate after-tax net present value of future net revenue attributable to the Company's estimated proved plus probable reserves (discounted at 10 percent and estimated using forecast prices and costs) increased by 93% to $1.3 Billion. On top of the reserve value, the Company's extensive exploration portfolio and discovered resources, including the significant MJ gas and condensate discovery in the D6 Block in India, provide substantial additional potential value for shareholders.
With a significant reserve write-down at the end of fiscal 2012 and associated production declines in the Company's main producing asset, fiscal 2013 was a very challenging year for Niko. This was coupled with the maturity of Cdn$310 million of convertible debt and a significant reduction in the availability under the Company's credit facility, all occurring in a very challenging illiquid capital market. Through it all, Niko's people launched the largest exploration program in the Company's history, achieving and exceeding many performance metrics and resulting in three potential discoveries in Indonesia. The ingenuity, planning and execution of Niko's drilling team in Indonesia consistently resulted in reduced drilling time and associated well costs, setting records for speed, cost and efficiency of deepwater drilling in Indonesia in recent times. Niko has also achieved a safety performance record second to none with no recordable injuries over the year, achieving a milestone of 8 million man-hours without a recordable incident in our operated properties in India! Development activities commenced in the producing fields in the D6 Block in India to bring on additional production, address the decline in reservoir pressure and increase water handling capacity. The Company addressed its maturing convertible debenture by issuing common shares and new unsecured convertible notes for combined gross proceeds of Cdn$273 million, and raised $113 million from the Company's program of asset sales, farm-outs and other arrangements ($70 million in fiscal 2013 and $43 million thus far in fiscal 2014), with substantial additional proceeds targeted for the remainder of fiscal 2014.
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