Niko Provides Drilling Update Press Release: Niko Resources Ltd. – 48 minutes ago
CALGARY, ALBERTA--(Marketwire - Jan 10, 2013) - Niko Resources Ltd. ("Niko" or the "Company") (NKO.TO), provides the following exploration updates:
The Ajek-1 exploration well in the Kofiau block, located offshore Papua province in eastern Indonesia, was drilled to a depth of 6,270 feet in 25 days, 32% faster than planned, and encountered 23 feet of pay over two target intervals, with additional thin bedded potential being analyzed. Drilling confirmed the presence of reservoir and hydrocarbon charge, the primary pre-drill concerns in this previously undrilled sub-basin. All sands encountered were hydrocarbon filled with no water leg and C5+ gas composition indicated liquid hydrocarbons. The well has been assessed as a sub-commercial oil and gas discovery. Ajek-1 was the first well drilled in the 5,000 km2 Kofiau block and the well results will allow improved reservoir analysis assessing thin bed pay potential as well as improved prediction of potential locations with thicker sand packages.
Additional prospectivity on the Kofiau block remains to be evaluated in both the Pliocene clastic section as well as in a Miocene carbonate play. The Miocene carbonate prospects are analogous to producing fields in the nearby Salawati basin which have cumulatively produced over 500 mmbbl of oil to date.
The Ocean Monarch drilling rig is mobilizing to the Niko-operated West Papua IV block where it will spud the Cikar-1 well in mid-January, with a projected drilling time of 60-70 days. Cikar-1 is targeting a large Miocene carbonate prospect.
The G2 well on the D19 discovery in the D6 Block was successfully drilled. The D19 discovery is one of four satellite discoveries approved for development by the Government of India.
The MJ-1 exploration well in the D6 Block is currently expected to spud in the next few months. MJ-1 will target the Mesozoic synrift clastic reservoir, similar to the currently producing MA oil and gas field in the block.