Niko makes three discoveries offshore India

Niko Resources Ltd. has made three new discoveries in two blocks off India's east coast. Discovery wells KG-D6-Q1 and KG-D6-P2 are in block D6 in the Krishna-Godavari basin. Well NEC-25-A5 is in block NEC25 of the Mahanadi basin.

Offshore staff

CALGARY, Canada -- Niko Resources Ltd. has made three new discoveries in two blocks off India's east coast. Discovery wells KG-D6-Q1 and KG-D6-P2 are in block D6 in the Krishna-Godavari basin. Well NEC-25-A5 is in block NEC25 of the Mahanadi basin.

The KG-D6-Q1 well is 15 km (9.3 mi) southwest of the AA-1 gas discovery, while the KG-D6-P2 well is 6 km (3.7 mi) west of the P1 gas discovery. The KG-D6-Q1 well encountered pay zones in the distal part of the earlier established channel levee systems in the KG D6 block. Data obtained from logging and modular dynamic testing (MDT) prove the presence of hydrocarbons.

Well KG-D6-P2 encountered two gas bearing zones, both channel fan complexes. Data from logging and MDT corroborates the presence of hydrocarbons. These two wells demonstrate the continued prospectivity of the block, the company says.

Niko's third discovery is in block NEC-25. Well NEC-25-A5 lies in the Mahanadi basin 12 km (7.5 mi) northwest of the earlier natural gas discovery NEC-25-A1 (Dhirubhai 9). The recent well, Dhirubhai 32, is the seventh consecutive discovery in this block.

Niko has notified the Directorate General of Hydrocarbons and concerned authorities of the new discoveries.

Commerciality is under evaluation.

3/13/2007

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