Niko Resources Hits Offshore Western India

Niko Resources Ltd. is pleased to announce the results of the Hazira offshore A-2 appraisal well. The uppermost gas zones were encountered at a structural level 15 meters above the previous highest well in the field with a distinctive thickening of many of the individual reservoirs. Ten gas zones were successfully open hole tested, one on a 1/4" choke, the others on a 3/4" choke. Equipment constrained combined test flow rates were 67 MMCF/D.

Two of the thickest most prolific zones were not tested, as the presence of gas is self evident from logs and multiple pressure points. Six other zones with gas potential were not tested due to open hole conditions. In addition a deeper 12-meter oil zone has been encountered. The well is being cased and this zone will be tested through perforations.

Mr. Ohlson, Niko's President, stated, "The Company is thrilled with these results. The well has in excess of 150 meters of hydrocarbon pay thickness and fully confirms the Company's field model."