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Gold/Mining/Energy : KOB.TO - East Lost Hills & GSJB joint venture -- Ignore unavailable to you. Want to Upgrade?

To: Ed Pakstas who wrote (5901)	10/20/1999 10:06:00 AM
From: Salt'n'Peppa	Read Replies (3) \| Respond to of 15703

Niko Resources confirms a 1.65 TCF gas field, with a 10 MMcf/day test. I posted this to show non-O&G types that we don't need a 100 MMcf/day test at ELH to demonstrate a large gas field. Enjoy. S&P ----------------------------------------- Niko Resources Celebrates Huge India Gas Discovery Test results released late last week confirm that Calgary's adventurous Niko Resources has scored a huge success in India. In the latest test from the company's Hazira #10 well, six previously untested zones were drill stem tested at more than 10 million cubic feet of natural gas a day. Niko's estimates peg the size of the field at 1.65 trillion cubic feet. "It's a hell of a gas property," says Denis Mote, an analyst with Maison Placements. "I've looked at a lot of reservoirs in my day and I don't think I've ever seen a better one." Bill Magee of Credifinance Securities also likes the Hazira play. "They have a great gas field. It just keeps getting better with every test. It's a very big, very good gas field and it's within a six-iron shot of their market. It's like having Caroline next door to the Joffre petrochemical complex." Niko has a one-third interest in the Hazira gas field, which covers 50 square kilometres on the shoreline and in the shallow waters of the Gulf of Cambay in the Arabian Sea, about 25 kilometres southwest of the city of Surat in Gujarat state. When the company acquired the rights to develop the field, there was only a single clogged and shut-in gas well drilled in 1969. Hazira is now producing 20 million cubic feet a day and Niko president Bob Ohlson says that's just a whiff of things to come. "Our target for the field is 300 million cubic feet a day," he says. "That sounds pretty optimistic when you are at 20 million, but we're just getting started." And Niko is selling its gas, which costs about 15 cents a thousand cubic feet (mcf) to produce, for an eye-popping $3.45 US an mcf to eager customers only 15 kilometres away from the field. (excerpt from Kerm Yerman's newsletter of October 19, 1999) --------------------------------