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Indonesia: Niko kicks off multibasin drilling program

Niko Resources Ltd., Calgary, has begun a multibasin exploratory drilling campaign in Indonesia as the company gained participation in its 21st block in Indonesia.

Drilling is to start in April at the first of two shallow water wells, Candralila-1 and Ratnadewi-1, on the 5,908 sq km Lhokseumawe PSC offshore north Sumatra adjacent to giant Arun gas-condensate field and LNG plant. Niko and Zaratex NV shot a 3,865 sq km 3D seismic survey on the block and identified a number of high-impact prospects.

Niko’s Diamond Ocean Monarch deepwater rig is to arrive on Lhokseumawe in September 2012 to drill Jayarani-1, the first well in Niko’s planned program of more than 25 deepwater wells off Indonesia.

Meanwhile, Eni SPA will drill the Lebah-1 well in the second half of 2012 to test an extension of the Jangkrik and Jangkrik-NE discoveries that total more than 400 million bbl of oil equivalent reserves to date in the North Ganal PSC off East Kalimantan in which Niko is a participant. Jangkrik production is to start in 2015.

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