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:

REUTERS SHOWCASE

2015: India Outlook

2015: India Outlook

India in 2014: A dream run for markets  Full Article 

Funding Woes

Funding Woes

Co-founder of SpiceJet seeks time to finalise rescue  Full Article 

Regulating Airfares

Regulating Airfares

India considers temporary cap on airfares - government official  Full Article 

Flying Back on Course

Flying Back on Course

The inside story of the new Airbus A350 jet  Full Article 

Oil Price Forecast

Oil Price Forecast

Oil prices likely to rebound in second half of 2015: poll  Full Article 

Cyber Attacks

Cyber Attacks

China condemns cyberattacks, but says no proof N.Korea hacked Sony  Full Article 

Connecting Markets

Connecting Markets

China stock connect scheme scorecard throws up surprises  Full Article 

Reuters India Mobile

Reuters India Mobile

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