Niko Discovers Oil in D6 Block Offshore India

Niko Resources has made their first deepwater oil discovery off the east coast of India in the prolific D6 block with the successful completion of the D6 - MA -1 well. The MA-1 well is the first Cretaceous test to be carried out by the D6 joint venture and reached a total depth of 3,783 meters and encountered oil and gas in two tested intervals. Preliminary evaluations indicate the well penetrated 26 meters of net oil pay and 72 meters of net gas pay. The oil zone tested at an equipment restricted flow rate of over 6,700 BOPD and 10.96 MMSCFD through a 64/64 inch choke with a flowing well-head pressure of 1,366 psig. The upper rich gas zone tested at an equipment restricted flow rate of over 32 MMSCFD and 3,370 barrels of condensate per day from a 80/64 inch choke with a flowing wellhead pressure of 1,609 psig. Well tests and coring results indicate excellent reservoir properties.

The D6 Cretaceous oil discovery opens a new petroleum province in the D6 block. Extensive areas of the D6 block have Cretaceous oil prospectivity and evaluation of this will commence immediately with the spudding of the MB-1 well in early July. The MB-1 well is structurally higher and located approximately 11 km east of MA-1. MB-1 is ideally located to test geologic models which indicate the D6 Block is optimally positioned for encountering high quality Cretaceous reservoirs.

Reliance Industries is the other partner on the D6 Block.

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