CALGARY, ALBERTA--(Marketwire - July 10, 2012) - Niko Resources Ltd. ("Niko") (TSX:NKO). Niko is pleased to provide an offshore drilling update.
- The Ratnadewi-1 well has reached a vertical depth of 1,322 meters. Power generator problems led to the rig losing electric power and as a result logging was possible only to a depth of 1,180 meters. MDTs (formation pressure measurements) were taken and indicated an oil gradient. Fluid samples were recovered from two sample points with both sample points containing light oil as well as formation water and mud filtrate. Evaluation of the well is continuing with sidewall coring and further MDTs of additional zones prior to casing and drill stem testing. New generators are being delivered and the rig is expected to be fully operational early next week.
- The Discoverer Seven Seas deepwater rig is arriving earlier than previously estimated and is now expected to commence drilling the Lebah prospect in the North Ganal block on July 17th.
- The Ocean Monarch is expected to arrive in Singapore between July 28th and August 4th to begin a hull inspection that is planned for approximately 35 days. As a result the rig is expected to commence operations for Niko during the first week of September.
- The Shadow-1 well in Block 2ab has reached a vertical depth of 1,373 meters; 13 3/8 casing has been set and drilling will commence tomorrow.
Certain statements in this press release are forward-looking statements. Specifically, this press release contains forward-looking statements relating to management's approach to operations, estimates of future sales, production and deliveries, business plans for drilling and development, estimated amounts and timing of capital expenditures, anticipated operating costs, royalty rates, cash flows, transportation plans and capacity, anticipated access to infrastructure or other expectations, beliefs, plans, goals, objectives, assumptions and statements about future events or performance. The reader is cautioned that the assumptions used in the preparation of such information, although considered reasonable by Niko at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Such factors include, but are not limited to: general economic, market and business conditions; industry capacity; competitive action by other companies; fluctuations in oil and gas prices; the results of exploration and development drilling and related activities; the uncertainty of estimates and projections relating to productions, costs and expenses; uncertainties as to the availability and cost of financing; fluctuations in currency exchange rates; the imprecision in reserve estimates; risks associated with oil and gas operations, such as operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the weather in the Company's area of operations; the ability of suppliers to meet commitments; changes in environmental and other regulations; actions by governmental authorities including changes in laws and increases in taxes; decisions or approvals of administrative tribunals; risks in conducting foreign operations (for example, political and fiscal instability or the possibility of civil unrest or military action in countries such as India and Bangladesh); the effect of acts of, or actions against international terrorism; and other factors, many of which are beyond the control of Niko. There is no representation by Niko that the actual results achieved during the forecast period will be the same in whole or in part as those forecast.