Niko Says Equipment at Chattak-2 Well Damaged Beyond Repair

Chattak Well, Bangladesh
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Niko Resources reports that the uncontrolled release of dry sweet gas is continuing at a substantially reduced rate of flow from the Chattak-2 Well in Bangladesh. The site is secure and no injuries have occurred.

Some of the equipment on site including the drilling rig has been damaged beyond repair, and equipment including another rig is being mobilized to site to stop the uncontrolled flow of gas and resume drilling operations.

The gas is from one of the newly targeted gas reservoirs in the Chattak structure. Despite this incident, this gas flow confirms the potential for commercial gas reserves from the Chattak structure. Further, Niko believes that no significant damage will have occurred to this reservoir. Once remedial operations are complete which is currently anticipated to take 6 - 8 weeks, drilling will continue on the original program.

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