From the Wires
Niko Provides Exploration Update
By: Marketwired .
Nov. 9, 2012 08:25 AM
CALGARY, ALBERTA -- (Marketwire) -- 11/09/12 -- Niko Resources Ltd. ("Niko" or the "Company") (TSX:NKO), along with partner Zaratex N.V., announces the Jayarani-1 well, located in the Lhokseumawe PSC offshore Aceh western Indonesia, has reached TD at a depth of 11,537'. The well penetrated the pre-drill geologic objectives of Oligo-Miocene Peutu and Cunda carbonates, but no commercial reservoir was encountered. The Niko Indonesia team completed this first well of a multi-well program safely, under budget and ahead of schedule, significantly improving performance in comparison to the offset wells drilled by other operators.
Niko will now mobilize the Ocean Monarch drilling rig to the West Papua region of eastern Indonesia where it will begin drilling the Ajek-1 well in the Kofiau PSC, the first well to be drilled based on its SeaSeep(TM) technology, followed by the Cikar-1 well in the West Papua IV PSC and at least four other wells in the area. Partners in the upcoming wells include Hess on Ajek-1 and Statoil on Cikar-1. The Niko Indonesia business plan has been to acquire a large number of PSCs in emerging exploration trends, use advanced technology to develop a portfolio of high impact wells, execute leveraged farm-outs, and target partners with worldwide deep water experience. By taking a portfolio approach, Niko will benefit from economies of scale in drilling operations as well as increase the statistical likelihood of success.
A number of changes made by Niko for the Ocean Monarch have and will result in significant time and cost savings for the Company. For example, due to reductions in the weight of materials and equipment on the rig, the time required for location moves could be reduced by greater than 30 percent.
Certain statements in this press release constitute forward-looking information. Specifically, this press release contains forward-looking information relating to planned drilling activities and the Company's exploration strategy in Indonesia and anticipated cost savings based on past drilling experiences. These forward-looking statements are based on certain key expectations and assumptions, including management's interpretation of the geology relating to the Company's blocks in Indonesia, anticipated costs relating to mobilization and drilling with the Ocean Monarch drilling rig and anticipated drilling conditions. The reader is cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors and such variations may be material. Such factors include, but are not limited to: the results of exploration and development drilling and related activities; changes in capital programs; the uncertainty of estimates relating to costs and expenses; risks associated with oil and gas operations including equipment failures or accidents; the ability of suppliers and third party contractors to meet commitments; pressure or irregularities in geological formations; and adverse weather conditions. Niko makes no representation that the actual results achieved during the forecast period will be the same in whole or in part as those forecast.
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