Offshore staff

CALGARY, Canada -- Niko Resources Ltd.has reached the targeted depth on well MB-1 in the D6 block offshore India.

The well encountered good quality reservoir sands, but no hydrocarbons were found. Niko says the well has provided significant geological information to help optimize development of the multiple Cretaceous oil prospects. MB-1 was the shallowest Cretaceous structure identified in the D6 block.

The well has been plugged and abandoned. Further evaluation of the multiple prospects in D6 will continue with the drilling of appraisal/ exploratory well MA-2 in the MA-1 prospect. MB-1 was the 20th well drilled in the D6 block.

11/16/06