(Adds analyst comments, share movement)
Nov 9 Oil and gas producer Niko Resources Ltd
said another one of its offshore wells in Indonesia
came up dry, sending its shares down as much as 25 percent.
BMO Capital Markets analyst Jared Dziuba said the latest
well is the fourth one to turn up dry in its 2013 Indonesian
"Aside from a lack of exploration success to-date, funding
concerns continue to weigh on the company, particularly ahead of
a convertible note repayment in December," Dziuba added.
Earlier this week, Niko reported a dry well in Trinidad,
hurting the company's plans to raise output outside India where
it is grappling with falling volumes.
Niko and partner ENI SpA abandoned another
Indonesian well in September.
The Canadian company started an extensive drilling program
in September in Indonesia where it has production-sharing
contracts on 22 offshore blocks.
"This dry well was very disappointing and will lead to
downward pressure on the share price for the foreseeable
future," Cannacord Genuity analyst Christopher Brown said.
Shares of the Calgary, Alberta-based company were down 16
percent at C$9.95 in early trade on the Toronto Stock Exchange
on Friday. As of Thursday, they had lost about 79 percent of
their value in the preceding 12 months.
Niko said it now plans to begin drilling the Ajek-1 well in
the West Papua region of eastern Indonesia.
The company also operates in Bangladesh, Pakistan,
Madagascar and the Kurdistan region of Iraq.
(Reporting by Maneesha Tiwari and Ankur Bannerjee in Bangalore;
Editing by Joyjeet Das and Sreejiraj Eluvangal)