ACQUISITION / Niko Resources acquires Nigerian Concession
Niko Resources Ltd. (ASE - NKO) through its wholly owned subsidiary Niko
Resources Nigeria Ltd., has been novated into offshore Block OPL 226 by
Niko's indigenous partner, Solgas Petroleum (Nigeria) Ltd., and the
assignment has been consented to by the Nigerian Government. Niko has a 40%
working interest and will act as operator of the development.
Block OPL 226 is located in shallow waters within the Niger Delta and
encompasses 1500 square kilometers (over 375,000 acres). Over 1000
kilometers of 2-D seismic has been shot over the block and three exploration
wells have been drilled, all encountered hydrocarbons with pay sections of up
to 50 meters thick.
Dr. Emmanuel Egbogah, a Distinguished Member of the Society of Petroleum
Engineers, and Vice President of Niko stated "This is a very strategic block
and a real success for Niko to receive, particularly in light of the number
of major international companies that actively vied for this position. OPL
226 is one of the premier remaining exploration and development blocks in
Nigeria. Although 3-D seismic will further delineate the structures, I feel
based on current data that this block has the potential to recover up to 500
million barrels of oil".
Niko's Executive Chairman, Edward Sampson, stated "The structure of the deal
is attractive; there are no overriding royalties to any party, normal
Nigerian royalties are reduced due to the indigenous component and our
partner is responsible for their share of development costs".
Niko Resources Ltd. is an international oil and gas company with operations
in India, Nigeria, and Canada.
February 10, 1998
For further information please contact:
Niko Resources Ltd. (403) 262-1020
Edward Sampson, Executive Chairman or Paul Wright, Vice President Finance. |
