Production
Field performance is outstanding with output averaging in surplus of 700 MMSCFD over the last seven days and is currently exceeding 900 MMSCFD or more than 32% of the 2800 MMcf/day target that is at present expected prior to calendar year-end. When producing at target levels, Niko Resources’ corporate wide annual cash from operations is anticipated to approach $500 million or $10 per share.
Exploration
KG-D6 AR2:
The location was concluded in April 2009 at a total depth of 4358m. The well extended the gas accumulation which was initially discovered by the R1 well and consequently to the increased potential of natural gas resource in this area.
KG-D6 BA2:
The well is targeting the crest of a large anticlinal ridge feature that trends northeast to southwest across the complete block. The structure displays comparatively late movement and trap closures have formed in intervals ranging from the Early Pliocene to Cretaceous. All horizons have been recognized 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 drill the well in the upper cretaceous.
KG-D6 AS1:
KG-D6 AS1 is situated 11.2km due west of the KG-D6 R1 in water depths of 1791m and is intended to a target depth of 3,639m. 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 site April 26, 2009.
