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Niko Resources Ltd. revised its reserves 16.3 per cent lower, a move that raises more questions than answers, Canaccord Genuity analyst Melanie Love says.

"Niko Resources released its reserves summary for its producing properties in India and Bangladesh," Ms. Love wrote in a research note. "Niko booked a negative revision of 6.9 per cent that results in a year-over-year reduction of 16.3 per cent in its net proved and probable reserve profile. No data was given for the proved case."

"The negative reserve revisions were expected, but will still not be taken positively in the market," she noted.

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"The booked net present value was $1.827-billion, virtually unchanged from $1.832-billion last year, due to increases in forecast commodity prices. Most unfortunately, the increased commodity price assumptions were not detailed."

The oil and gas producer will provide further breakdowns by country and by asset in its full reserves report on June 24, when it announces earnings.

Ms. Love has a $79 price target on the stock and rates it "hold."

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