June 13 (Reuters) - Canadian oil and natural gas producer
Niko Resources Ltd said its proved reserves increased
by 160 percent, and that a recent gas discovery in the D6 block
off India's east coast could add significantly to future
Niko shares rose as much as 13 percent in morning trading on
the Toronto Stock Exchange on Thursday.
"These discoveries (proved reserves) are undeveloped and not
expected to come on production until 2015 to 2017. Nevertheless,
it is positive as it highlights Niko's portfolio, developing
assets over the next few years," Macquarie Equities Research
analyst David Popowich told Reuters.
Niko said in May it made a significant gas discovery, along
with its partners, in the KG-D6 block off India's east coast.
Reliance Industries Ltd is the operator of the
block with a 60 percent stake. BP Plc holds 30 percent
and Niko the rest.
Niko said it received the final draft of the reserve
evaluations for the D6 and NEC-25 blocks in India and a block
each in Trinidad and Tobago and Bangladesh.
Niko, which also operates in Pakistan, Madagascar and the
Kurdistan region of Iraq, said total company reserve rose to
about 550 billion of cubic feet equivalent of total proved
The company said the MJ-1 gas discovery in the D6 block was
not reflected in these reserves.
Niko shares, which have risen about 39 percent since the
company announced the gas discovery in India on May 24, were up
8 percent at C$8.25 in late-morning trading. They touched a high
(Reporting by Ankur Banerjee and Vijay Vishwas in Bangalore;
Editing by Maju Samuel)