Niko Hails Dramatic Increases, Development in Q4, FY07 Report
Niko has reported a dramatic year-over-year increase in reserves in its Fourth Quarter and FY07 financial results.
Proved reserves at fiscal year-end increased by 86 percent to more than 200 MMBoe while proved plus probable reserves increased by 18 percent to almost 290 MMBoe, representing a 20-fold production replacement ratio. The net present value of proved plus probable reserves increased by almost 40 percent.
The reserves and net present value do not include the results of the additional 16 exploration discoveries in D6, nor any of the 10 successful exploration discoveries in NEC-25. From the first discovery at D6 in 2002, the development of the D6 gas fields has progressed for a deepwater offshore discovery. The development is on time and on budget, with first production scheduled to occur in the third calendar quarter of 2008.
The president has noted that this will be an historic event not only for Niko, but also for India, as with less than 5 percent of the area of the massive D6 block developed, the fields will be able to more than double India's total current gas production.
Also during this past fiscal year, Niko continued to strengthen its balance sheet, preparing for the future by putting in place a US$550 million credit facility and exiting the year with a cash balance of over $450 million.
Niko also reported that over the last year the Company has obtained four new blocks in Pakistan and one new block in the Kurdistan Region of Iraq. These new blocks more than double Niko's net acreage from 2.4 million net acres to 4.9 million net acres.
D6 oil and natural gas production is expected to commence in the third calendar quarter of 2008. Volumes will ramp up to a targeted rate of 2.8 Bcf per day of natural gas and 40,000 bbls per day of oil. These events will culminate in a multi-fold increase in Niko's production and earnings.
Although four new exploration successes were made during the past year, drilling was largely allocated to development. Confirmed additional rigs becoming available in the coming year will enable redeployment to exploration drilling for both oil and gas.
Niko's goal is to continue to pursue new venture opportunities with the objective of expanding its inventory of high-impact prospective plays.
Operates 1 Offshore Rigs
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