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by Stockwatch Business Reporter

West Texas Intermediate crude for February delivery added 37 cents to $99.14 on the New York Merc, while Brent for February added $1.49 to $111.78 (all figures in this para U.S.). Western Canadian Select traded at a discount of $23.25 to WTI ($75.89), unchanged. Natural gas for January lost three cents to $4.43. The TSX energy index lost a fraction to close at 269.14.

Niko Resources Ltd. (NKO) added 62 cents to $2.56 on 2.97 million shares. It has arranged a $33-million private placement of subscription receipts at $1.97, dependent on closing a separate $340-million (U.S.) credit facility, with most of the money being used to refinance its debt and develop its 10-per-cent-held D6 block offshore India. There is good news on that front, too. According to Indian news outlets, the government has agreed to allow Niko and its joint venturers, Reliance Industries and BP, to receive higher gas prices, if they provide a bank guarantee to cover their liability if gas-hoarding charges are proven. (The government said last summer it would double the price for domestic gas in April. Some officials wanted to deny the D6 joint venture that price, alleging that the companies must have hoarded gas from D6 in anticipation of a higher price. D6 has produced far less than the companies originally said it would.) The matter could remain in arbitration for some time, so the government has agreed to give the joint venture the higher prices for now. If the arbitration finds the joint venture deliberately underproduced gas, however, it will have to give back the incremental revenue received from the new price. The necessary bank guarantee is estimated at about $9-billion. It is not clear if Niko will have to contribute. A request for comment was not returned by publication deadline.

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