CALGARY (Yosefardi) – Niko Resources Ltd. reported the Pananda-1 exploration well in the North Makassar block, located offshore Kalimantan in the deepwater Makassar Strait of Indonesia, was drilled in water depth of 7,433 feet to a total depth of 19,685 feet in 50 days, and an 80 foot gas interval was identified in the upper section of the well.
Drilling confirmed the presence of hydrocarbons in a previously untested Middle Miocene turbidite package in a basin floor setting. A thick package of over 700 feet of very fine grained distal turbidites was drilled, although poor reservoir properties indicate non-commerciality at this location. The Pananda-1 well is situated approximately 40 kilometres southeast of the Chevron-led deepwater development project at Gehem field.
Additional prospectivity in the Middle Miocene turbidite play remains to be evaluated in the vicinity of Pananda-1. Niko holds a significant acreage position in this play trend along with joint venture partners Statoil, Eni, GDF Suez and Black Platinum Energy.
The Ocean Monarch drilling rig is mobilizing to the Cendrawasih PSC in Eastern Indonesia, where it will spud the Elang-1 well in early July, 2013. The Company has reached an agreement with Repsol SA in which a Repsol subsidiary company will become a joint venture participant in the Cendrawasih PSC.
As a result of the farmout, Niko will operate with a 70% interest and Repsol will have a 30% working interest in the PSC. The transfer of interest is subject to approval by the Government of Indonesia.