UPDATE 1-Niko Resources posts profit on India project ramp up

Thu Jun 24, 2010 7:37am EDT

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* Q4 EPS $0.76 vs loss $0.06/shr year ago

* Revenue up nearly four-fold

* Sees exploration spending at $180 mln for 2011

June 24 (Reuters) - Canadian oil and gas company Niko Resources Ltd's (NKO.TO) reported a fourth-quarter profit compared with a loss in the year ago, driven mainly by ramp up of operations at one of its key gas projects in India.

For the fourth quarter ended March 31, the company earned $38.7 million, or 76 cents a share, compared with a loss of $3.1 million, or 6 cents a share, a year ago.

Revenue rose nearly four-fold to $110.6 million.

The company, which owns a 10 percent working interest in D6 block in India's Krishna-Godavari basin with Reliance Industries (RELI.BO) owning the rest, said gas production at the block was 217 million cubic feet per day at March-end.

The company has a cash balance of $246 million and said exploration spending is expected to increase to about $180 million for fiscal 2011.

Shares of the Calgary, Alberta-based company closed at C$105.37 Wednesday on the Toronto Stock Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Aradhana Aravindan)

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