Niko Resources updates Indonesian ops
Friday, August 14 2009 - 01:34 AM WIB
Niko has acquired interests in several blocks in deepwater offshore Indonesia. Indonesia has long been a prolific oil and gas producing nation with very large reserves; however, its deepwater areas have remained essentially unexplored.
All blocks have sea bottom oil and gas seeps and large structural features, and several have direct indication of hydrocarbons on seismic. The single well commitment for each block will follow seismic acquisition and interpretation. The seismic program planned for each block is outlined below:
| Block | Planned seismic |
| Bone Bay | 3,000 kilometres of 2D |
| Cendrawasih | 1,200 square kilometres of 3D |
| Kofiau | 1,062 kilometres of 2D, 3,150 square kilometres of 3D |
| Kumawa | 3,000 kilometres of 2D |
| Seram | 3,500 kilometres of 2D |
| South Matindok | 4,400 kilometres of 2D |
| Southeast Ganal | 284 kilometres of 2D, 2,700 square kilometres of 3D |
| West Sageri | 371 kilometres of 2D, 702 square kilometres of 3D |
The Company has arranged for a major international seismic contractor to shoot a 3D spec survey in both the Southeast Ganal and West Sageri blocks, and this program commenced in July 2009. Additional 2D seismic surveys will also be acquired in these blocks and a contract for these surveys is expected to be signed in September 2009 with acquisition to commence prior to the end of 2009.
This 2D vessel will also conduct new seismic surveys in the Bone Bay, South Matindok, Kofiau and Seram blocks. In the Kofiau Block, both a 2D and a major 3D seismic program are planned and acquisition of the 3D is expected to commence in the fourth quarter of calendar 2009.
As at March 31, 2009, the Company had acquired rights in PSCs for interests in five deep-water offshore exploration blocks covering almost 25,000 square kilometres. The Company will operate two of the blocks, South East Ganal and West Sageri, and will earn a 51 percent working interest. These blocks are located in the Makassar Strait.
The Company will participate in the South Matindok, Seram and Bone Bay blocks and earn a 25 percent working interest therein. The South Matindok block is located in northeast Sulawesi, the Seram block is located in north Seram and the Bone Bay block is located in southwest Sulawesi.
Each of the blocks is in the first exploration period, which expires in November 2011.
The Company has minimum work commitments in this period to acquire and process 16,550 kilometres of 2D seismic in total for the five blocks and drill one well in each of the five blocks.
In May 2009, the Company and its partners were awarded three additional offshore exploration blocks: Kofiau, Kumawa and Cendrawasih. The Company will operate the Kofiau block and will earn a 67 percent working interest. This block is located in west Papua.
In the Kumawa and Cendrawasih blocks, which will not be operated by the Company, the Company will earn a 25 percent working interest. These blocks are located in southwest and northwest Papua, respectively.
Each of these three Indonesian blocks is in the first exploration period, which expires in May 2012, and the Company has minimum work commitments for the acquisition of 4,042 kilometres of 2D seismic, 1,200 square kilometres of 3D seismic, drilling one well per block and various payments under the agreements.
| CAPITAL EXPENDITURE | Actual spending for the June 30, 2009 (1) | Forecast spending three months ended for July 1, 2009 to March 31, 2010 (2) |
| (millions of U.S. dollars) | (millions of U.S. dollars) | |
| Indonesia | 5.6 | 26 |
| (1) The Company also spent US$0.4 million on new ventures and other | ||
(2) Refer to Forward-Looking Information and Material Assumptions in this MD&A for a description of how forecast capital expenditures are estimated. |
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For the eight Indonesian blocks, the total remaining minimum work commitments, including seismic and one exploration well per block during the first exploration periods, are US$205.3 million (US$114.3 million net to the Company). This exploration period ends in November 2011 for five of the blocks and in May 2012 for the remaining three blocks. (end of excerpt)