Niko Resources has announced that the Indonesian government has provisionally awarded Niko and its partners four blocks covering almost 20,000 square kilometers.
In two of the blocks, Niko will be operator and earn a 51% working interest. In the two other non-operated blocks, Niko will earn a 25% working interest. Each of the Blocks is approximately 5,000 square kilometers and located primarily in deep water. These blocks represent prime acreage selected from extensive geologic and geophysical evaluations covering one million square kilometers, an area the size of Texas and California combined.
The acquisition of these blocks will establish Niko as a leading company in the exploration of the largely unexplored deepwater areas offshore Indonesia. Considering the overwhelming success in finding oil and gas in shallow water and onshore areas of Indonesia, there is potential that Indonesian deep waters will provide successes similar to those seen in the deep waters of India, Brazil, Gulf of Mexico and West Africa to mention a few.
The 2 blocks operated by Niko are in the deep waters of the prolific Kutei Basin where over 7 billion barrels of oil equivalent have been proved to date on land and in shallow water. This area will see a significant amount of drilling by major oil companies over the next 2 years verifying the high expectations held by the industry. The 2 non-operated blocks are also associated with areas containing in excess of 2 billion barrels of oil equivalent.
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