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

Chief Executive Officer's Message

The focus of our efforts continues to be to achieve our overarching goal of enhancing value and ultimately monetizing the Company’s core assets for the benefit of all its stakeholders.  However, general market conditions in the industry coupled with our on-going legal issues relating to our assets in India and Bangladesh provide significant challenges that need to be overcome in order to achieve our goal.

The continued non-payment of amounts due for natural gas and condensate delivered from Block 9 in Bangladesh threatens the ability of the Company to fund its operations over the next several months.   In addition, it is the opinion of both the Company and our independent reserves evaluator that reserves associated with Niko’s interest in Block 9 can no longer be recognized at this time.  If the situation in Bangladesh can be resolved, then reserves for Block 9 could again be recognized.

Faced with this liquidity concern, we continue to pursue resolution of the situation in Bangladesh and actively market our interest in the D6 Block in India.  I believe that the recent announcement by the operator of the D6 Block indicating that they will award contracts to progress development of the R-Series deepwater gas fields in the block could help this marketing process and that a sale of our interest in the D6 Block could potentially provide a solution to our liquidity situation and achieve our Company’s overarching goal.  However, no assurance can be made that these efforts will provide a solution on a timely basis or at all.

While we remain hopeful, we acknowledge that much work has to be done and we are committed to doing our best for the benefit of all stakeholders. 

 

William Hornaday – Chief Executive Officer, Niko Resources Ltd.