UPDATE 1-Niko forecasts robust cashflow growth; shares jump

Fri Mar 8, 2013 12:04pm EST
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* Expects FY15 funds from operations to double from $88 mln in FY14

* Says received offers for certain of non-core assets

* Shares jump as much as 23 pct (Adds details on fiscal 2014 forecast; updates share movement)

March 8 (Reuters) - Oil and natural gas producer Niko Resources Ltd said it expects funds from operations for the fiscal year ending March 2015 to nearly double from the preceding year due to an anticipated increase in the price of gas in India.

Shares of Niko rose as much as 23 percent to C$7.39 on the Toronto Stock Exchange on Friday. The stock had fallen by a third since the company reported its seventh quarterly loss in February.

The Canadian company also said it has received significant offers for certain of its non-core assets, a move that should help fund spending aimed at raising output from its key gas field in India.

Calgary, Alberta-based Niko said it was evaluating the offers, but did not name the assets or the interested parties.

Chief Financial Officer Glen Valk declined to comment.

Niko said last month that the price for gas it sells in India could double to between $8.00 and $8.50 per million British thermal units based on a pricing formula recommended by an Indian government panel.   Continued...