Niko Resources Ltd., Calgary, and Zaratex NV encountered no commercial reservoir at the Jayarani-1 exploratory well on the Lhokseumawe PSC offshore Aceh Province in western Indonesia.
Jayarani-1 went to a TD of 11,537 ft and penetrated the predrill geologic objectives of Oligo-Miocene Peutu and Cunda carbonates.
Niko will now move the Ocean Monarch semisubmersible to West Papua to drill the Ajek-1 exploratory well on the Kofiau PSC, the first well to be drilled based on its patented SeaSeep technology, followed by the Cikar-1 well on the West Papua IV PSC and at least four other wells in the area. Partners in these wells include Hess Corp. on Ajek-1 and Statoil ASA on Cikar-1.
Niko’s Indonesia business plan has been to acquire a large number of PSCs in emerging exploratory trends, use advanced technology to develop a portfolio of high impact wells, execute leveraged farmouts, and target partners with worldwide deep water experience. Niko expects to benefit from economies of scale in drilling operations as well as increase the statistical likelihood of success.
Niko made a number of changes in the Ocean Monarch that have and will result in large time and cost savings. For example, due to reductions in the weight of materials and equipment on the rig, the time required for location moves could be reduced by more than 30%, Niko said.