Niko Cuts KG-D6 Reserves Estimates

Canada-based Niko Resources has announced a reduction in its reserves in the D6 block in the Krishna Godavri basin.

“Proved plus probable reserves at D6 as at March 31, 2012 have reduced to 193 bcfe but it is important to recognize that coincident with the reduced reserves there is approximately a $700 million reduction in future capital,” the company said.   Company’s total reserves on March 31 were 377 billion cubic feet.

Reliance Industries, Niko’s partner D6 block, has also reported a reduction in reserves. 

“An assessment of reservoir performance concluded that, contrary to the previous geological model, the current D1/D3 producing wells did not appear to be receiving any contribution from outside the main channel areas,” Niko said.   

Production of natural gas from KG Basin has been consistently decline over the months and is set to see a further dip.