Niko reports eighth gas discovery

Niko Resources Ltd. reports a new gas discovery in the NEC 25 block located in the Mahanadi offshore basin, off the Orissa coast in the Bay of Bengal. This shallow water block covering an area of 10,775 sq. km. in water depths ranging between 20-600 meters was awarded under the bidding round of NELP I. Niko holds a 10% interest in the block.

This is the eighth discovery in the block. As previously announced, development plans have been submitted to the Directorate General of Hydrocarbons for approval.

The well NEC 25-J1 was drilled on the southern portion of the new 2007 3D seismic, with the objective of exploring upper Miocene slope sands in the deeper part of the block. This well was drilled at a water depth of 478 meters to the target depth of 2926 meters. For the first time in this basin, the well encountered high quality multi-darcy gas bearing reservoir sands in the interval 2484 - 2495.5 meters.