Niko Resources Underscores D6 Drilling Operations Offshore India

Krishna Godavari Basin
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Niko Resources has provided the following D6 operations update:


On April 2, 2009 Niko announced that it had commenced production from the Indian D6 Block. Field performance is exceptional with production averaging in excess of 700 MMSCFD over the last 7 days and is now exceeding 900 MMSCFD or over 32% of the 2800 MMcf/day target that is now expected before calendar year-end. When producing at target levels, Niko's corporate wide annual cash from operations is expected to approach $500 million or $10.00 per share.



KG-D6 AR2 is located in water depth of 1844m and is approximately 5.7km northwest of the KG-D6 R1 Late Miocene gas discovery. The location was completed in April of 2009 at a total depth of 4358m. The well extended the gas accumulation originally discovered by the R1 well and as a result enhanced the potential natural gas resource in this area.


KG-D6 BA2 is currently the farthest offshore well in the KG-D6 block at 80km from the coast and is located in water depth of 2472m. The well is targeting the crest of a large anticlinal ridge feature that trends northeast to southwest across the entire block. The structure displays relatively late movement and trap closures have formed in intervals ranging from the Early Pliocene to Cretaceous. All horizons have been identified and mapped as potential targets.

The well was spudded on April 3, 2009 and is forecast to drill to a total depth of 7128m, which will TD the well in the Upper Cretaceous.


KG-D6 AS1 is located 11.2km due west of the KG-D6 R1 in water depths of 1791m and is planned to a target depth of 3,639 meters. The well targets the shallower Late Miocene gas discovery at KG-D6 R1.

The well is being drilled by the Discoverer 534 drillship which arrived on location April 26, 2009.

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