* Expects FY15 funds from operations to double from $88 mln
* Says received offers for certain of non-core assets
* Shares jump as much as 23 pct
(Adds details on fiscal 2014 forecast; updates share movement)
March 8 (Reuters) - Oil and natural gas producer Niko
Resources Ltd said it expects funds from operations for
the fiscal year ending March 2015 to nearly double from the
preceding year due to an anticipated increase in the price of
gas in India.
Shares of Niko rose as much as 23 percent to C$7.39 on the
Toronto Stock Exchange on Friday. The stock had fallen by a
third since the company reported its seventh quarterly loss in
The Canadian company also said it has received significant
offers for certain of its non-core assets, a move that should
help fund spending aimed at raising output from its key gas
field in India.
Calgary, Alberta-based Niko said it was evaluating the
offers, but did not name the assets or the interested parties.
Chief Financial Officer Glen Valk declined to comment.
Niko said last month that the price for gas it sells in
India could double to between $8.00 and $8.50 per million
British thermal units based on a pricing formula recommended by
an Indian government panel.
Based on the projected benefit of the pricing, funds from
operations - an indication of cashflow - for the fiscal year
2015 is expected to double from the $88 million anticipated for
the next fiscal year, Niko said.
Niko estimated last month that it would spend $35 million to
$45 million on the D6 Block off India's east coast for the
fiscal year ending March 31, 2014.
Capital spending on the block, in which Niko has a 10
percent stake, is expected to be less than $10 million in the
current fiscal year, a Niko spokeswoman told Reuters last month.
India's Reliance Industries Ltd, holder of a 60
percent stake in the block, and the UK's BP Plc, which
owns 30 percent of it, said last month that they plan to invest
more than $5 billion over the next three to five years to boost
declining output in the block.
Niko, however, plans a minimum capital expenditure of about
$130 million for fiscal 2014, much less than the expected
spending of more than $200 million this fiscal year.
The company also has operations in Bangladesh, Indonesia,
Trinidad, Madagascar and Pakistan. It has had to abandon many
wells in Indonesia and Trinidad.
The company on Friday cut its sales volumes forecast for the
current quarter by 3 percent to about 126 million cubic feet
equivalent per day (mmcfe/d), citing some work at a reservoir in
the D6 Block.
Sales volumes in India would be lower in the early part of
fiscal year ending March 2014 too, the company said.
It forecast volumes of 122 mmcfe/d for fiscal 2014 and 133
mmcfe/d for 2015.
Niko also cut its forecast for funds from operations for the
January-March quarter by 12 percent to about $22 million.
(Reporting by Bhaswati Mukhopadhyay and Sandhya Vijayan;
Editing by Sriraj Kalluvila and Roshni Menon)