Niko finds significant gas in India block; shares soar

Sat May 25, 2013 7:23am IST

Related Topics

Stocks

   

REUTERS - Canadian oil and natural gas producer Niko Resources Ltd (NKO.TO) said on Friday it made a significant gas discovery, along with its partners, in the KG-D6 block off India's east coast, sending its shares up 26 percent.

Niko, which partners India's Reliance Industries Ltd (RELI.NS) and BP Plc (BP.L), said the discovery is expected to add to the gas resources in the block, without revealing potential reserves.

"It is a significant discovery in the sense that out of a half-inch choke you have got 2,000 barrels a day and over 30 million cubic feet a day of gas flowing ...," Niko Chief Executive Edward Sampson told Reuters.

The discovery, named D-55, comes at a time when the companies had been grappling with declining output at the block.

"We shall embark on the appraisal program in the next few months in order to evaluate the options for developing this discovery," PMS Prasad, executive director at Reliance Industries, said in a statement.

A Reliance Industries spokesman declined to give further details when contacted by Reuters.

Reliance Industries is the operator of the block with a 60 percent stake. BP holds 30 percent and Niko the rest.

Niko shares rose to a high of C$7.54 in early morning trade on the Toronto Stock Exchange on Friday. The stock has lost more than 40 percent this year to Thursday close.

Shares in Reliance Industries closed flat at 786.45 rupees.

(Reporting by Bhaswati Mukhopadhyay in Bangalore and Prashant Mehra in Mumbai; Editing by Sriraj Kalluvila)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Press Event

Press Event

Modi takes tea, but no questions, in first press event as PM.  Full Article 

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage