Niko sees 4.6 billion boe potential from four Indonesian blocks

Canadian oil, gas firm Niko Resources reported that it has received a prospective resource report for its Kofiau block, offshore West Papua.

The report shows a best estimate gross unrisked prospective resources of 787 million barrels of oil equivalent (BOE), the company said in a quarterly report released recently.

To date, the company has received prospective resource reports on four of its sixteen blocks in Indonesia. Total best estimate gross unrisked prospective resources for the four blocks is 4.6 billion BOE, including 2.890 billion BOE for Southeast Ganal block, 407 million BOE for North Makassar Straits block and 549 million BOE for North Sageri blocks.

These estimates were prepared by Netherland Sewell Associates Inc.

?The independent assessment prepared by NSAI affirms management?s estimates of the significant reserve potential on the first four blocks. In upcoming months, the company intends to provide independent resource reports for its 12 other blocks in Indonesia,? the company said.

Niko has interest in 16 exploration blocks, mostly are located in the eastern part of Indonesia and operates 12 of the blocks.

The company added that planning for drilling activities has commenced and it expected to award a drilling contract late September 2011 with drilling campaign expected to start in 2012. (alex)