Niko Updates Activities in India & Bangladesh

Niko Resources says the Hazira platform has been installed in the offshore portion of the Hazira gas field. Installation of the two 12 inch export pipelines to the Hazira gas processing plant and the connection to the offshore platform will be completed by April 30, 2004. The modular drilling rig is currently being placed on the platform with expected drilling operations starting within 30 days. First gas production from the platform is expected in early May 2004. Niko has a 33 percent working interest.

Niko has been granted final approval for the development of the shallow gas field in the Surat Block. Compression and dehydration equipment is on location. Production is expected within two weeks and will increase to 15 - 20 mmcf/day by summer 2004. Niko has a 100 percent working interest.

In Bhandut the drilling of the Bhandut 6 well has reached total depth and is testing a seismically identified closure northeast of the existing producing oil wells. New 2-D seismic was recently acquired over this field that suggested a new oil play. The pay section is structurally higher and has better reservoir quality than the offsetting producer, which was put on production in February flowing 200 bbls/day. Based on production results it is anticipated a drilling program of 4 - 6 wells will follow. Niko as operator has a 40% interest.

In Bangladesh on the Feni Block the Feni-3 well was spud earlier this week. Feni-3 is the first in a three well appraisal program. The Feni program is designed to test and produce three separate gas zones. Niko has an 80 percent working interest.

On the Chattak Block a 200 km2 3D seismic program has commenced to optimize the planned drilling locations at Chattak East and West gas fields. The program is scheduled to be completed by the end of May 2004 with drilling to commence in August, 2004. Niko has a 75 percent working interest.

On Block 9 the Lalmai-3 exploration well is currently drilling ahead at 1804 meters. The planned TD is 2789 meters and the well is to be completed by end of April, 2004. The Lalmai well is designed to further evaluate apparent gas zones in Lalmai 1&2. Upon completion of Lalmai-3 the rig will move to the Bangora prospect which is an undrilled anticline located 40 km north of Lalmai. Niko has a 60 percent working interest.