Niko gets resources evaluation report on MJ Discovery

Niko Resources Ltd. today said that it has received an independent resources evaluation report for the MJ Discovery in the D6 Block in India from Deloitte LLP ("Deloitte"), an independent petroleum engineering firm.

The evaluation has been prepared in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities and the Canadian Oil and Gas Evaluation Handbook, with an effective date of March 31, 2015.

"The discovery and successful appraisal of MJ adds a new and exciting chapter to the D6 Block. Going forward, the contractor group in the block will be working on plans to develop MJ, which may lead to potentially significant additions to reserves and production levels in the coming years," said William T Hornaday, Chief Operating Officer, Niko Resources Ltd.

Deloitte has evaluated the contingent resources for the MJ Discovery in the D6 Block in India based on available information, including the drilling, testing and coring results of the MJ-1 discovery well and the MJ-A1, MJ-A2, and MJA3 appraisal wells.

"The appraisal program, which included three appraisal wells, has provided additional information on understanding the reservoir. The first appraisal well, MJ-A1, in what is now designated as the Northern fault block, had encouraging results. No hydrocarbon bearing zone was encountered in the second appraisal well, MJ-A2, in the Eastern segment of MJ discovery area. The third appraisal well, MJ-A3, in the Central (South) fault block, encountered hydrocarbons at the zone of interest, with the zone thinner than expected," Niko said.

Deloitte's best case estimate of gross unrisked contingent resources of 1.4 trillion cubic feet of equivalent (Tcfe) relates to the Central (North), Northern and Central (South) fault blocks that were drilled by the MJ-1, MJ-A1, and MJ-A3 wells, based on an estimated areal extent of approximately 24 square kilometers, approximately twice the areal extent of the analogous MA field that is currently producing.