Last checked at 
* Expects FY15 funds from operations to double from $88 mlnin FY14
* Says received offers for certain of non-core assets
* Shares jump as much as 23 pct (Adds details on fiscal 2014 forecast; updates share movement)
March 8 (Reuters) - Oil and natural gas producer NikoResources Ltd said it expects funds from operations forthe fiscal year ending March 2015 to nearly double from thepreceding year due to an anticipated increase in the price ofgas in India.
Shares of Niko rose as much as 23 percent to C$7.39 on theToronto Stock Exchange on Friday. The stock had fallen by athird since the company reported its seventh quarterly loss inFebruary.
The Canadian company also said it has received significantoffers for certain of its non-core assets, a move that shouldhelp fund spending aimed at raising output from its key gasfield in India.
Calgary, Alberta-based Niko said it was evaluating theoffers, but did not name the assets or the interested parties.
Chief Financial Officer Glen Valk declined to comment.
Niko said last month that the price for gas it sells inIndia could double to between $8.00 and $8.50 per millionBritish thermal units based on a pricing formula recommended byan Indian government panel.
Based on the projected benefit of the pricing, funds fromoperations - an indication of cashflow - for the fiscal year2015 is expected to double from the $88 million anticipated forthe next fiscal year, Niko said.
Niko estimated last month that it would spend $35 million to$45 million on the D6 Block off India's east coast for thefiscal year ending March 31, 2014.
Capital spending on the block, in which Niko has a 10percent stake, is expected to be less than $10 million in thecurrent fiscal year, a Niko spokeswoman told Reuters last month.
India's Reliance Industries Ltd, holder of a 60percent stake in the block, and the UK's BP Plc, whichowns 30 percent of it, said last month that they plan to investmore than $5 billion over the next three to five years to boostdeclining output in the block.
Niko, however, plans a minimum capital expenditure of about$130 million for fiscal 2014, much less than the expectedspending of more than $200 million this fiscal year.
The company also has operations in Bangladesh, Indonesia,Trinidad, Madagascar and Pakistan. It has had to abandon manywells in Indonesia and Trinidad.
The company on Friday cut its sales volumes forecast for thecurrent quarter by 3 percent to about 126 million cubic feetequivalent per day (mmcfe/d), citing some work at a reservoir inthe D6 Block.
Sales volumes in India would be lower in the early part offiscal year ending March 2014 too, the company said.
It forecast volumes of 122 mmcfe/d for fiscal 2014 and 133mmcfe/d for 2015.
Niko also cut its forecast for funds from operations for theJanuary-March quarter by 12 percent to about $22 million. (Reporting by Bhaswati Mukhopadhyay and Sandhya Vijayan;Editing by Sriraj Kalluvila and Roshni Menon)
