Niko & Reliance Make Huge Gas Discovery Offshore India

Niko Resources and Reliance Industries have made another huge exploration discovery in Block D6, 26 kilometers off the East coast of India. The D6-D1 exploration well was drilled in 1280meters of water to a depth of 2757 meters and encountered in excess of 100 meters of net gas pay confirming our geologic model. The D1 well is located 13 kilometers southeast of the D6-F1 well and 6 kilometers northeast of the D6-SH-2 well.

The operator has increased the estimate of initial gas in-place reserves for Block D6 to 10.45 trillion cubic feet in which Niko has a 10% working interest. This updated gas in-place figure does not include volumes attributed to the last two wells (D1 and A2) but only the first six wells drilled on the block. DeGoyler & MacNaughton will integrate results of the last two wells for the final reserves certification report.

The current exploration program has evaluated less than 16% of the total D6 Block area. A 2,500 square kilometer 3D seismic survey will be shot in October 2003, which will provide the basis for a second exploration drilling campaign.