Niko Scores Again at Feni in Bangladesh

Niko Resources announces a third successful well in the Feni Block approximately 125km southeast of Dhaka onshore Bangladesh.

The Feni 5 well was directionally drilled to a total depth of 3364 meters. Four cased-hole drill stem tests produced gas at a combined rate of 29.3 million cubic feet per day. Feni 3 tested at 13.6 million cubic feet per day and Feni 4 tested at 32 million cubic feet per day.

Production facilities have been installed in the field and are currently producing in excess of 20 million cubic feet per day. Additional equipment has been ordered and is being transported to site. The additional facilities are expected to be operational in January 2005.

Niko is the operator of the field and holds an 80 percent working interest.