April 9 (Reuters) - Shares of oil and natural gas producer
Niko Resources rose 14 percent on Tuesday following
media reports that its partner Reliance Industries Ltd
has made a significant gas discovery in the KG-D6 block on
India's east coast.
Reliance found natural gas in the first exploration well it
spud in more than five years in the flagging natural gas fields
in the block, Indian media reported. (http://link.reuters.com/fyc37t)
The discovery was in MJ1, a new area in the producing gas
fields of D6.
Niko has a 10 percent stake in the D6 block, while Reliance
holds 60 percent and BP the rest.
"The confirmation of a discovery would be welcome news for
Niko, which has struggled over the past year with declining
production in India and a string of disappointing exploration
results offshore Indonesia," Macquarie Equities Research analyst
David Popowich wrote in a client note.
"Nonetheless it remains early days and we continue to wait
for confirmation of the results from the operator," Popowich
The company, which also has operations in Bangladesh,
Indonesia, Trinidad, Madagascar and Pakistan, said last month it
was in advanced talks to sell some non-core assets for $157
Niko's shares were up 81 Canadian cents at C$7.07 on the
Toronto Stock Exchange on Tuesday afternoon.
(Reporting by Ankur Banerjee in Bangalore; Editing by Don