Niko says block D6 gas reserves greater than 10 tcf

Niko Resources Ltd. and Reliance Industries have another exploration success in block D6, 26 km off the east coast of India.

Apr 29th, 2003

Niko Resources Ltd. and Reliance Industries have another exploration success in block D6, 26 km off the east coast of India.

The D6-D1 exploration well was drilled in 1,280 m of water to 2,757 m and encountered 100 m of net gas pay, confirming the geologic model. The D1 well is 13 km southeast of the D6-F1 well and 6 km northeast of the D6-SH-2 well.

Niko has increased the estimate of initial gas in-place reserves for block D6 to 10.45 tcf, in which Niko has a 10% working interest. This updated gas in-place figure does not include volumes attributed to the last two wells (D1 and A2), but only the first six wells drilled on the block. DeGoyler & MacNaughton will integrate results of the last two wells for the final reserves certification report.

The exploration program has evaluated less than 16% of the total D6 block area. A 2,500 sq km 3D seismic survey will be shot in October, which will provide the basis for a second exploration drilling campaign.

04/29/03

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