Niko Resources Ltd. announces commencement of Indonesian drilling program
Tuesday, Apr 03, 2012Niko Resources Ltd. ("Niko") (TSX:NKO) is pleased to announce commencement of its exploration drilling program in Indonesia and participation in the company's twenty-first block in the country.
Niko will partner with Zaratex N.V. in the 5908km2 Lhokseumawe PSC in western Indonesia. The block is located directly adjacent to the giant Arun field (greater than 3.1BBOE) and associated LNG plant. A 3865km2 3D program was acquired on the block and a number of high impact prospects were subsequently identified. Drilling is to commence in the shallow water portion of the block in April with two wells. The Candralila-1 and Ratnadewi-1 prospects will be drilled back to back and if successful will be monetized relatively quickly by accessing the existing extensive local infrastructure.
Niko's deep water rig, the Diamond Ocean Monarch, is scheduled to arrive in Lhokseumawe in September to drill the Jayarani-1 well. This will be the first well in Niko's planned program of more than 25 deep water wells in Indonesia.
In addition, in the North Ganal PSC in which Niko is a participant, operator Eni will be using the Transocean Seven Seas to drill the Lebah-1 well in the second half of 2012. The Lebah prospect will test the extension of the Jangkrik and Jangkrik-NE discovery trend (greater than 400MMBOE of reserves to date). Eni has already filed a POD for the development of these discoveries and first production is expected in 2015.
In Trinidad, drilling in both the offshore Block 2ab Shadow prospect and the onshore Central Range Tigre prospect are to commence in June. Shadow is targeting up to 150 million barrels of oil and 1 TCF of gas. Tigre is targeting oil with over 100 million barrels of exploration potential.
In India, the D6 block Integrated Development Plan for commercialization of approximately 3 TCF of additional discovered gas will be submitted to the government by October, 2012. It is expected to add approximately 1 BCF/day of additional new production.
Although domestic gas pricing has remained a major impediment to capital investment in India, Niko looks forward to the positive statements the government has recently made as to a resolution of this issue.
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