Niko Resources announces drilling update on Aceh well

By Romel S. Gurky

Calgary-based oil and gas firm Niko Resources Ltd provided the following offshore drilling update on the Ratnadewi-1 prospect in the Lhokseumawe block, offshore Aceh, Indonesia.

The company said in a statement obtained by Petromindo late Wednesday that the Ratnadewi-1 well has reached a vertical depth of 1,322 meters.

Power generator problems led to the rig losing electric power and as a result logging was possible only to a depth of 1,180 meters, the firm said.

?MDTs (formation pressure measurements) were taken and indicated an oil gradient. Fluid samples were recovered from two sample points with both sample points containing light oil as well as formation water and mud filtrate,? Niko said.

?Evaluation of the well is continuing with sidewall coring and further MDTs of additional zones prior to casing and drill stem testing. New generators are being delivered and the rig is expected to be fully operational early next week,? the company said in a July 10 statement.

The firm explained that the Discoverer Seven Seas deepwater rig was arriving earlier than previously estimated and was now expected to commence drilling the Lebah prospect in the North Ganal block on July 17.

?The Ocean Monarch is expected to arrive in Singapore between July 28 and August 4 to begin a hull inspection that is planned for approximately 35 days. As a result the rig is expected to commence operations for Niko during the first week of September,? ended the statement.

Niko has a 30 percent non-participating interest in the Lhokseumawe PSC. The drilling of the Ratnadewi-1 well was aimed at obtaining information to determine the prospectivity of the Candralila-1 prospect.

Unrisked recoverable reserve estimates for the complex of shallow water prospects in which the Candralila well is found range from a most likely value of approximately 130MMBOE with upside potential in excess of 400MMBOE.

Editing by Reiner Simanjuntak