TORONTO (Yosefardi) – Niko Resources Ltd has decided to temporarily suspend its drilling program in Indonesia, pending the company’s re-evaluation of its go-forward exploration capital spending priorities.
“The company is working on options to potentially refinance its credit facility to provide increased funding for its future capital programs,” Niko said Friday.
Niko is working on various options to drill for third parties or to assign the contract for the Ocean Monarch rig and related service contracts to third parties for an extended period of time. The Ocean Monarch is being mobilized to the Makassar Strait area until the decision on the next drilling location has been finalized.
The company said the Elit-1 well, located in the Kofiau PSC offshore Papua province in eastern Indonesia, has been drilled in water depth of 1,335 feet to a total depth of 3,915 feet in 9 days by Diamond Offshore’s Ocean Monarch drilling rig, under budget and ahead of schedule. The well encountered 10 feet of gas at the top of a 90 foot sand package and has been plugged and abandoned.
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