Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Niko Surges Most in 17 Years on Gas Discovery: Calgary Mover

May 24 (Bloomberg) -- Shares of Niko Resources Ltd. soared the most in 17 years after announcing a gas discovery off the east coast of India.

Niko jumped 23 percent to C$7.35 at 4 p.m in Toronto, the biggest rise since May 1996. The Calgary-based firm is down 31 percent in 2013, the fourth worst-performing stock in the S&P/TSX Energy Index during that period.

Niko, along with partners Mumbai, India-based Reliance Industries Ltd. and BP Plc, based in London, announced today they discovered “significant gas condensate” after drilling a well off India’s east coast.

The discovery, named “D-55”, showed good flow potential and further testing will be done to define the scale and quality of the field, the companies said in a statement.

Alan Knowles, an analyst with Haywood Securities Inc., said the discovery may boost Niko’s reserves by 31 percent to 96 percent compared with the end of 2012, representing $225 million to $700 million in value to the company.

“We shall embark on the appraisal program in the next few months in order to evaluate the options for developing this discovery,” P.M.S. Prasad, executive director at Reliance Industries, said in the statement.

Niko owns a 10 percent stake in the “KG D6” venture, while Reliance operates the KG D6 block with a 60 percent stake. BP owns the remaining 30 percent.

To contact the reporter on this story: Eric Lam in Toronto at elam87@bloomberg.net

To contact the editor responsible for this story: David Scanlan at dscanlan@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.