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* Niko, partners say they do not have estimate on reserves
* Niko shares rise 26 pct (Adds Niko CEO comments)
May 24 (Reuters) - Canadian oil and natural gas producerNiko Resources Ltd said on Friday it made a significantgas discovery, along with its partners, in the KG-D6 block offIndia's east coast, sending its shares up 26 percent.
Niko, which partners India's Reliance Industries Ltd and BP Plc, said the discovery is expected toadd to the gas resources in the block, without revealingpotential reserves.
"It is a significant discovery in the sense that out of ahalf-inch choke you have got 2,000 barrels a day and over 30million cubic feet a day of gas flowing ...," Niko ChiefExecutive Edward Sampson told Reuters.
The discovery, named D-55, comes at a time when thecompanies had been grappling with declining output at the block.
"We shall embark on the appraisal program in the next fewmonths in order to evaluate the options for developing thisdiscovery," PMS Prasad, executive director at RelianceIndustries, said in a statement.
A Reliance Industries spokesman declined to give furtherdetails when contacted by Reuters.
Reliance Industries is the operator of the block with a 60percent stake. BP holds 30 percent and Niko the rest.
Niko shares rose to a high of C$7.54 in early morning tradeon the Toronto Stock Exchange on Friday. The stock has lost morethan 40 percent this year to Thursday close.
Shares in Reliance Industries closed flat at 786.45 rupees. (Reporting by Bhaswati Mukhopadhyay in Bangalore and PrashantMehra in Mumbai; Editing by Sriraj Kalluvila)
