Niko Provides Drilling Update
CALGARY, ALBERTA -- (Marketwire) -- 01/10/13 -- Niko Resources Ltd.
("Niko" or the "Company") (TSX:NKO), provides the following
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.
Certain statements in this press release constitute forward-looking
information. Specifically, this press release contains
forward-looking information relating to the anticipated timing of
drilling activities. These forward-looking statements are based on
certain key expectations and assumptions, including 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: 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.
Niko Resources Ltd.
Chairman of the Board, President & CEO
Niko Resources Ltd.
VP Finance & CFO
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