CALGARY, ALBERTA--(Marketwire - Sept. 11, 2012) - Niko Resources Ltd. ("Niko") (TSX:NKO).
Drilling operations on the Lebah-1 well, located on the North Ganal PSC in the Makassar Strait of Indonesia, have been completed by PSC operator Eni. The well reached a vertical depth of 11,585' while testing all the pre drill geologic objectives. The well has been plugged and abandoned and the Discoverer Seven Seas is moving off location. This was the first of two largely carried wells to be drilled on the 2437km2 North Ganal Block.
The Lebah-1 well targeted a series of Upper Miocene - Pliocene deep water channel sands analogous to those found in nearby discoveries by Eni and partners. Although Lebah drilled over 800' of reservoir quality sands distributed over a number of intervals only one of the sands was hydrocarbon bearing. The Upper Miocene 11,500' sand had 12' of gas at the top of a 41' gross sand interval.
Additional interpretation of the newly reprocessed seismic data by Eni, integrating the results from Lebah-1, will allow the Joint Venture Partners to evaluate the updip resource potential of the 11,500' and other sands. Additional possible drilling locations have already been identified within this depositional trend.
As well, the significant resource potential of deeper Middle Miocene sands will be the subject of future drilling.
Maestro -1 well in Block 2ab is on location.
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.