Niko Resources* (NKO : TSX : $23.64), Net Change: -1.86, % Change: -7.29%, Volume: 595,167
Better late than never. Shares of Niko Resources were down after the company issued a drilling update on several exploration
plays that the company is involved in. NKO announced that the Hercules 208 off-shore rig has moved to the Ratnadewi-1
prospect from Candralila-1 in the Lhokseumawe block in Indonesia. Candralila-1 was plugged and abandoned without reaching
target depth due to mechanical problems. NKO noted that the Candralila-1 well had oil and gas shows while drilling and partial
logs recovered had indications of potential prospectivity. Information from the Ratnadewi-1 well will assist in determining
prospectivity for Candralila-1. If you follow Canaccord Genuity International Oil & Gas Analyst Christopher Brown, this would
be old news to you, as Brown highlighted the failure of the Candralila-1 well last week. In the drilling update the company also
noted that it has spudded its Shadow-1 prospect in Trinidad, using the Rowan Gorilla III offshore rig. NKO also noted that the
Discoverer Seven Seas deepwater rig is now slated to commence drilling the Lebah prospect in the North Ganal block in
Indonesia in August after the completion of its current drilling location. While NKO share price has fallen meaningfully from
recent levels, it is worth noting that a new reserve update from the company’s D-6 block offshore India is expected late June.
Brown notes that this could be a negative event for the company.