Niko updates Indonesian ops

The following is an excerpt from quarterly report issued on Friday by Canadian oil, gas firm Niko Resources. (ed)

Niko has acquired interests in twelve deepwater offshore blocks in Indonesia. Indonesia has long been a prolific oil and gas producing nation with very large reserves; however, its deepwater areas have remained essentially unexplored. Most blocks have sea bottom oil and gas seeps and large structural features, and several have direct indication of hydrocarbons on seismic. Most of the blocks have a seismic commitment and nine of the blocks have a single well commitment.

Niko acquired Black Gold Energy LLC (Black Gold) in December 2009, resulting in increased interests in many of the blocks. The Company?s interests are outlined below:

Block	offshore Area	Niko's Interest
West Sageri (1)???????????	Makassar Strait???????????????????????	100%
SE Ganal (1)???????????????	Makassar Strait???????????????????????	100%
Seram (1)????????????????????	Seram North???????????????????????????	100%
South Matindok (1)	Sulawesi NE ????????????????????????????	100%
Bone Bay????????????????????	Sulawesi SW ????????????????????????????	45%
Kofiaut (1)??????	West Papua?????????????????????????????	100%
Kumawa????	Papua SW?????????????????????????????????	45%
Cendrawasih?????????	Papua NW????????????????????????????????	45%
Halmahera-Kofiau(1)?	Papua W	80%
West Papua IV (1)?????	Papua SW?????????????????????????????????	80%
East Bula (1)???????????????	Seram NE????????????????????????????????	100%
North Makassar??????????	Makassar Strait?????????????????????????	50%
(1) Operated by the Company.(2) The Company farmed out 20 percent of its interest subsequent of Black gold.

The 2D seismic programs for West Sageri, SE Ganal, South Matindok, Bone Bay and Kofiau are complete and the 2D seismic program for Kumawa is in progress. A total of 9,500 kilometres has been acquired of the 22,100 kilometre 2D seismic program planned for all blocks.

The 3D seismic programs for the West Sageri and SE Ganal blocks totaling 3,100 square kilometres have been acquired. A further 7,100 square kilometers of 3D seismic acquisition is planned for the remaining blocks.

The remaining 2D and 3D seismic is expected to be completed by the middle of calendar 2010.

For the Indonesian blocks, the remaining work commitments for interests acquired in twelve PSCs include seismic for most of the blocks and one exploration well for nine of the blocks. The cost of the remaining minimum work commitments during the first exploration period are estimated at US$210 million. (US$121 million net to the Company). This exploration period ends in November 2011 for five of the blocks, in May 2012 for the three blocks and in November 2012 for the remaining four blocks. (end of excerpt)