"Niko Resources has discovered a significant amount of gas in the Feni gas field in block 15," the Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) official said.
BAPEX, a sister firm of state-run Bangladesh Mineral, Oil and Gas Corporation (Petrobangla), signed an agreement last October to explore for gas jointly with Niko Resources in the field located in eastern Bangladesh.
"This is a joint venture between Niko and BAPEX with a 50:50 ratio to exploit gas in the field," Bapex said.
Niko has invested $15 million in the project.
"We expect to produce between 10 million cubic feet (mcf) and 15 mcf per day from this field and hope to begin commercial production from the middle of next month," the BAPEX chief said.
Bangladesh Gas Fields Company Limited, another sister organization of Petrobangla, discovered Feni gas field in 1981 but abandoned it in 1998 after producing a total of 40 billion cubic feet of gas.
An expert with Petrobangla said the reserves in the field might be about one trillion cubic feet. BAPEX had said it would also explore another gas field at Chhatak, in the northeast, under the joint venture with Niko.
Reserve estimates for Chhatak is unavailable, but it is estimated to be a medium-prospect field. The country has 20.5 trillion cubic feet of proven and recoverable gas reserve based on current estimates, officials said.
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