Niko Resources hold 66.67% interest in Kofiau block. 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.
In Kumawa block, Marathon Oil Corporation 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.
In Cendrawasih block, Exxon Mobil Corporation will operate with the company holding a 25% interest. The primary exploration targets are large Miocene age carbonate reefs.
Country Summary
When combined with previously announced acreage, as summarized below, the company now has an interest in eight deepwater exploration blocks in various offshore basins. All blocks are managed by Production Sharing Contracts with favorable deepwater exploration terms.
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. The company’s share of these costs for all eight blocks is around $115 million. Niko Resources expects that seismic operations will begin for all the eight blocks during the 2009.
