Niko Resources Ltd. (NKO), the Canadian oil and natural gas explorer with operations in South Asia, jumped the most in two weeks after more than doubling its proven reserves estimates.
Niko rose 8.6 percent to C$8.26 at 12:25 p.m. in Toronto. The shares earlier climbed 13 percent, the most intraday since May 30. The company has fallen 24 percent this year.
Niko more than doubled its proven reserves estimates to 550 billion cubic feet equivalent, the Calgary-based company said today in a statement. The newly confirmed reserves are in India, Bangladesh and Trinidad and Tobago.
“An increase in the value of proved producing reserves could allow access to additional bank lending,” Jared Dziuba, an analyst at BMO Capital Markets Ltd., wrote in a note today.
Last year, 88 percent of Niko’s revenue came from India and 12 percent from Bangladesh, according to data compiled by Bloomberg.
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