CALGARY, ALBERTA — (Marketwired) — 10/20/14 — Niko Resources Ltd. (“Niko” or the “Company”)(TSX: NKO) announces that on October 18, 2014, the Cabinet Committee of Economic Affairs of the Government of India approved the new domestic gas pricing policy for India. The press release issued by the Press Information Bureau of the Government of India is attached.
The Company will be evaluating the impact of the new domestic gas pricing policy on its assets in India.
About Niko Resources Ltd.:
With its head office in Calgary, Alberta, Canada, Niko is focused on value generation in the D6 Block in India, while maintaining optionality to benefit from the exploration potential in its portfolio.
Forward-Looking Information
Certain statements in this press release constitute forward-looking information. Specifically, this press release contains forward-looking information relating to the Company–s evaluation of the impact of the new domestic gas pricing policy on its assets in India. Undue reliance should not be placed on forward-looking information. Such forward-looking information reflects the Company–s current beliefs and assumptions and is based on information currently available to the Company. These forward-looking statements are based on certain key expectations and assumptions. The reader is cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. The forward-looking information is presented as of the date of this press release, and the Company assumes no obligation to update or revise such information to reflect new events or circumstances, except as required by law.
Press Information Bureau
Government of India
Cabinet Committee on Economic Affairs (CCEA)
18-October-2014 20:29 IST
Revision of Domestic Gas Prices
The Cabinet Committee of Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, today approved the new domestic gas pricing policy.
The salient features of the new Gas Pricing Policy are follows:
After the new Government took over, a decision was taken to defer the Domestic Natural Gas Pricing Guidelines, 2014 and to get the matter re-examined. For this purpose, a Committee which, included, Secretaries of the Ministries/Departments of Power, Expenditure and Fertilizer as Members with Additional Secretary, Ministry of Petroleum and Natural Gas as Member Secretary was appointed.
The Committee has recommended an approach for gas price determination, which is based on the modification to the Rangarajan formula by:
The Committee also recommended applicability of the modified approach prospectively and to apply it uniformly to all sectors of the economy, along with prevailing gas allocation policy of the Government. The Committee was of the view that the National Oil Companies (NOCs) may also get the same price as determined under the proposed dispensation, including the gas from the nomination fields. In addition, the Committee also drew attention to the fact that although in India gas is historically being priced on National Calorific Value (NCV), the input prices being used in the Rangarajan formula are based on Gross Calorific Value (GCV).
The following has been approved by the CCEA:-
Where
Contacts:
Niko Resources Ltd.
Glen Valk
VP Finance & CFO
(403) 262-1020