The entire Niko team is proud of our accomplishments during the past year.

Chief Executive Officer's Message

Development continues on the R-Cluster project in the D6 block with production projected to commence within 24 months.  Progress also continues on the Satellite Cluster and MJ development projects that are projected to result in additional production commencing in 2021 and 2022, respectively.  This progress, coupled with reduced capital costs and increased confidence in future commodity prices, have resulted in a substantial increase in the discounted net present value of future net revenues for the D6 Block as evaluated by our third-party reserves consultant as at March 31, 2018.   Niko’s share of the funding requirement for development of these projects is estimated at approximately $200 million between mid-2018 and mid-2020, after which time the future net operating revenues from the D6 Block are forecast to be sufficient to fund the development capital expenditures to complete the projects.  Niko continues to meet its funding requirements for its share of the D6 Block expenditures at the present time but the Company’s cash resources and projected internally generally cash flows are expected to be insufficient to meet the estimated total funding requirement of $200 million. 

The Company’s cash resources, and therefore its ability to fund its operations, could be positively enhanced by various factors, including the following:

  •         Obtaining financing for planned development projects in the D6 Block in India,
  •         Executing sale(s) of the Company’s interests in its core assets in India and Bangladesh, or
  •         Receiving payments of amounts due from Bangladesh Oil, Gas and Mineral Corporation (“Petrobangla”).

The improvements in value as noted above, progress on the development of the R-Cluster fields, and an expected favourable decision on or before 31 July 2018 by the arbitration tribunal on the alleged migration of gas dispute with the Government of India could enhance the potential to successfully monetize Niko’s interest in the D6 Block.  In parallel, the Company is pursuing financing options for the R-Cluster, Satellite Cluster and MJ development projects in the D6 Block in India to allow Niko to meet the funding requirements for D6.  However, no assurance can be made that additional funding will be secured in a manner or on a timely basis so as to enable the Company to meet its funding obligations. See “Liquidity and Capital Resources” below.


The Board, Management and employees of Niko are totally focused and engaged on these objectives for the benefit of all of its stakeholders.