Tuesday, September 13, 2011

Niko's Four Blocks in Indonesia Might Contain 4.6 Billion BOE

Theindonesiatoday.com - Niko Resources has received prospective resource reports on four of its 16 blocks in Indonesia with total best estimate of gross unrisked resources of 4.6 billion barrels of oil equivalent (boe).
In early August, Niko received a prospective resource report for its Kofiau block in Papua. "The report shows a best estimate gross unrisked prospective resources of 787 million barrels of oil equivalent," Niko said in its quarterly report today.

Niko has commissioned prospective resource estimates for the Southeast Ganal, North Makassar Strait, West Sageri and Kofiau Blocks located offshore Indonesia. Prospective resources are not reserves. Rather prospective resources are undiscovered resources that indicate exploration opportunities but nothing will be certain until wells are drilled. These estimates were prepared by Netherland Sewell Associates Inc. (NSAI) as of December 31, 2010 for Southeast Ganal, North Makassar Strait and West Sageri and as of May 31, 2011 for Kofiau.

Niko said that drilling activities planned have commenced and the company expects to award a drilling contract late September 2011.

Niko has interests in 16 oil and gas blocks in Indonesia. All of the blocks are in the first exploration period, which is a three-year period. The seismic commitments have been met and 10 of the blocks have a single well commitment.

The company has estimated the costs associated with the remaining work commitments to complete the first exploration period. These costs are estimated to be $148 million to be spent by November 2011; an additional $54 million by May 2012; an additional $6 million by November 2012; and an additional $46 million by May 2013. The company has applied or plans to apply for extensions where drilling activity is planned. Niko expects to be granted approval from the Government of Indonesia before the PSC three-year anniversary. The Company is required to relinquish a portion of the exploration acreage after the first exploration period. The drilling program for the Company's operated blocks could commence early 2012. (Theindonesiatoday.com)

Source; http://theindonesiatoday.com