Niko Drills Fourth Successful Well In India
nikoresources.com
Niko operates five oil and gas fields. Hazira, Bhandut, Cambay, Matar and Sabarmati are located in Gujurat State in western India with working interests ranging from 33.33% to 40%. Under the terms of the production sharing contracts, the Company is able to recover a multiple of its investment in a field before triggering a gradually increasing government share of net production revenue as a function of the total net cash income relative to the total investment. The detailed terms of these contracts vary slightly for each property. During the year ended March 31, 1998 the Company recovered all of the investment in Hazira and accordingly the Government of India is entitled to a 10% share of operating cash flow from Hazira, net of capital expenditures. Based on the planned capital program in the current year, this amount is not expected to be material. Gas sales are subject to royalties and sales tax, however, under the Company?s current gas sales arrangements, the gas purchaser pays these burdens over and above the negotiated gas sales price. Oil sales are subject to royalties and duties, which are paid by the Company.
Niko Res. Indian well successful
(Full text of press release from BCE Emergis E-News)
Calgary, Alberta, Oct 28 - Niko Resources Ltd. (TSE - NKO) is pleased to announce that an extremely successful well, Hazira #11, the first deviated well in the current 15 well program, has extended the area of proven reserves by over 800 meters. The well logs indicate there are at least 15 potential pay zones with varying thickness of up to 15 meters each. Mr. Ed Sampson, Niko's Executive Chairman, stated ``We are very pleased with the well results. They further validate our interpretation of the field and will significantly increase the proven reserves.' The well has been cased and the drilling of Hazira #12 has commenced. For further information please contact: Niko Resources Ltd. (403) 262-1020 Edward Sampson, Executive Chairman or Paul Wright, Vice President Finance. The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.
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