Press release from Marketwire
Niko Announces Indian Press Reports Indicating Approval of Increased Gas Price for D6 Gas Sales
Thursday, June 27, 2013
Niko Announces Indian Press Reports Indicating Approval of Increased Gas Price for D6 Gas Sales12:18 EDT Thursday, June 27, 2013
CALGARY, ALBERTA--(Marketwired - June 27, 2013) - Niko Resources Ltd. ("Niko" or the "Company") (TSX:NKO) announces that press reports in India are indicating that the Cabinet Committee of Economic Affairs ("CCEA") of the Government of India has approved a new pricing formula for domestic gas sales in India. The pricing formula is based on the average of the prices of imported LNG into India and the weighted average of gas prices in North America, Europe and Japan. For the D6 Block in India, the pricing formula will be effective on April 1, 2014 upon expiry of the current gas sales contracts on March 31, 2014. Based on information provided in the press, the gas price as at April 1, 2014 will be around $8.40 / MMbtu, double the price of $4.20 / MMbtu for current gas sales from the D6 Block, and prices are expected to be revised quarterly using the approved formula.
Details of the CCEA decision are expected to be released in the next few days.
Certain statements in this press release constitute forward-looking information. These forward looking statements are based on certain key expectations and assumptions of management. The reader is cautioned that the assumptions used in the preparation of such forward looking information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors and such variations may be material.
FOR FURTHER INFORMATION PLEASE CONTACT:
Niko Resources Ltd.
Chairman of the Board, President & CEO
Niko Resources Ltd.
VP Finance & CFO