UPDATE 2-Money-losing Niko says India gas price may double

Thu Feb 14, 2013 1:13pm EST
 
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* Third-quarter net loss more than doubles to $93.7 mln

* Oil, natural gas revenue falls 38 pct to $46.5 mln

* Says India production will fall unless new fields are added

* Shares fall as much as 9 percent

Feb 14 (Reuters) - Canadian oil and gas producer Niko Resources Ltd said the sale price of gas from its wells in India may nearly double, offering a ray of hope as the company reported its seventh quarterly loss in a row on Thursday.

Shares of Niko, which had a market value of C$635 million as of Wednesday's close, fell as much as 9 percent to C$8.20 on the Toronto Stock Exchange.

The stock has lost 79 percent of its value in the past year as the company suffered a string of exploration disappointments and struggled with declining output from the D6 block off India's east coast.

Niko said the gas price was likely to rise to between $8 and $8.50 per million British thermal units (mmBtu) based on a pricing formula recommended by an Indian government panel.

The recommendation now goes to the Indian cabinet for consideration. In India, the federal government sets prices of gas produced in the country.   Continued...