Niko Resources Ltd.

Niko Resources Ltd.

August 10, 2012 06:00 ET

Niko Resources Ltd.: Drilling Update

CALGARY, ALBERTA--(Marketwire - Aug. 10, 2012) - Niko Resources Ltd. ("Niko") (TSX:NKO). Niko is pleased to provide an offshore drilling update.



  • Cased hole testing has been completed. The well was drilled to 1,323 meters but was short of the planned total depth of 1,800 meters because of deteriorating hole conditions exasperated by rig engine problems.
  • Three potential reservoir sections were encountered at 862-877 meters, 990-1015 meters and 1,230-1,250 meters however the 9 5/8"casing was not able to be run past a depth of 1,084 meters. As a result the 1,230-1,250 meters sand interval could not be evaluated even though this interval recorded the highest gas readings in the well and appears to have the best reservoir potential as determined from LWD log indications.
  • The upper sand interval of 862-877m was wet. The 990-1015m sand tested gas with no water production at non commercial rates as a zone by itself.
  • The offset ONSF-1 well located approximately 300m from Ratnadewi-1 tested approximately 10 mmcf/d from an interval between 1,668-1,694 meters.
  • Niko intends to drill a follow up well using a different rig and a synthetic based mud system to properly evaluate this zone including the previously identified deeper targets.


  • The well spud on July 23 and is currently drilling ahead.

Ocean Monarch Rig

  • The scheduled hull inspection is underway in Singapore and the rig is still expected to sail to Niko's Jayarani-1 well in early September.



  • The well has been drilled and logs have been run to a depth of 2,225 meters. Currently 9 5/8 inch casing is being run and cemented, drilling of the final section of the well is to resume in the next few days in the Tertiary with potential for additional sands as well as objectives in the Cretaceous. The projected depth of the well is 3,000 meters.

Certain statements in this press release are forward-looking statements. Specifically, this press release contains forward-looking statements relating to management's approach to operations, estimates of future sales, production and deliveries, business plans for drilling and development, estimated amounts and timing of capital expenditures, anticipated operating costs, royalty rates, cash flows, transportation plans and capacity, anticipated access to infrastructure or other expectations, beliefs, plans, goals, objectives, assumptions and statements about future events or performance. The reader is cautioned that the assumptions used in the preparation of such information, although considered reasonable by Niko at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Such factors include, but are not limited to: general economic, market and business conditions; industry capacity; competitive action by other companies; fluctuations in oil and gas prices; the results of exploration and development drilling and related activities; the uncertainty of estimates and projections relating to productions, costs and expenses; uncertainties as to the availability and cost of financing; fluctuations in currency exchange rates; the imprecision in reserve estimates; risks associated with oil and gas operations, such as operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the weather in the Company's area of operations; the ability of suppliers to meet commitments; changes in environmental and other regulations; actions by governmental authorities including changes in laws and increases in taxes; decisions or approvals of administrative tribunals; risks in conducting foreign operations (for example, political and fiscal instability or the possibility of civil unrest or military action in countries such as India and Bangladesh); the effect of acts of, or actions against international terrorism; and other factors, many of which are beyond the control of Niko. There is no representation by Niko that the actual results achieved during the forecast period will be the same in whole or in part as those forecast.

Contact Information

  • Niko Resources Ltd.
    Edward S. Sampson
    Chairman of the Board, President & CEO
    (403) 262-1020

    Niko Resources Ltd.
    Murray Hesje
    VP Finance & CFO
    (403) 262-1020