Niko Resources Ltd. announces three new discoveries in their 2 blocks off the East Coast of India. These discoveries are in block D6 in the wells KG-D6-Q1 and KG-D6-P2 and in block NEC25 in the well NEC-25-A5.

In D6 the drilling of KG-D6-Q1 and KG-D6-P2 has been successfully completed. The KG-D6-Q1 well is located approximately 15 kilometers southwest of the AA-1 gas discovery and the KG-D6-P2 well is approximately 6km west of the P1 gas discovery. The KG-D6-Q1 well encountered pay zones in the distal part of the earlier established channel levee systems in the KG D6 block.

Based on the evidence of data obtained from logging and Modular Dynamic Testing (MDT), the occurrence of hydrocarbons in the clastic reservoirs in the above sequence was proven. The second well, KG-D6-P2, encountered two gas bearing zones. Both these zones are channel fan complexes. The data obtained from logging and MDT corroborates the presence of hydrocarbons. These two wells demonstrate the continued high prospectivity of the block. Both wells have been notified to the Directorate General of Hydrocarbons (DGH) and concerned authorities as new discoveries.

In addition to the above discoveries, Niko announces yet another discovery in block NEC-25 in the well NEC-25-A5. The well lies in the Mahanadi Basin approximately 12 kilometers northwest of the earlier natural gas discovery NEC-25-A1 (Dhirubhai 9). Based on the evidence of data obtained from logging and MDT, the presence of hydrocarbons is confirmed. This well has been notified to the DGH and concerned authorities as a new discovery, namely Dhirubhai 32, which is the seventh consecutive discovery in this block.

The commerciality of the above discoveries is currently under evaluation. These recent discoveries demonstrate the further upside potential of the blocks in the Krishna Godavari and Mahanadi Basins.