Niko, Partners Pick Up 3 Additional Exploration Blocks Offshore Indonesia

Niko Resources announced that the Indonesian government has awarded Niko and its partners three additional offshore exploration blocks. Each of the blocks is approximately 1.2 million acres.

  • The first block, Kofiau, is offshore west Papua and will be operated by Niko who will hold a 66.67% interest. The block is located in a geological setting similar to the nearby Salawati Basin where in excess of 500 million barrels of oil are discovered in Miocene carbonates.
  • The second, Kumawa, is offshore southwest Papua. Marathon will operate with the Company holding a 25% interest. The primary exploration targets are large structured traps with Jurassic age fluvial sandstones, which in the Bintuni basin located in west Papua hold over 17 TCF of discovered gas.
  • The third, Cendrawasih is located offshore northwest Papua in Cendrawasih Bay. Exxon will operate with Niko holding a 25% interest. The primary exploration targets are large Miocene age carbonate reefs.

Most of the blocks are found near-by prolific petroleum fields and share similar geological and geophysical attributes. The majority of the blocks are located in Eastern Indonesia that is emerging as an under-explored petroleum region with early stage success as exemplified by the Tangguh gas fields (17 TCF) located in West Papua.

The bid for each block includes a signature bonus, seismic and one well. Niko's share of these costs for all 8 blocks is approximately USD $115 million. Niko expects that seismic operations will begin for all the 8 blocks during the current year.