Niko plans 10 wells on onshore Surat block

Vol 6, PW 10 (17 Jul 02) Exploration & Production

Niko Resources of Canada plans 10 exploration wells this fiscal on its onshore 419-sq km CB-ONN-2000/2 block near Surat, which it won under NELP-II.

Niko has also budgeted money to build 12 drill sites. Together these two items will cost the company Rs67.54cr ($14m).

We understand Niko is waiting for approval from the Directorate General of Hydrocarbons for its 2002-03 work programme and budget. By end-June, Niko had prepared three drilling locations and obtained mining leases for three drilling sites.

It has also taken delivery of long lead items such as casings and wellheads and obtained leases for pipe yard storage areas and the warehouse. Niko is now hiring service contractors.

Additionally, Niko has finished shooting 3D and half its planned 2D. Below is a break-up of Nikos estimated costs for its 2002-03 work programme and budget.

Niko Resources' 2002-03 work programme and budget Item Estimates for 2002-03 budget Drilling 10 wells and building 12 drill sites Rs6,754 lakh ($13.8m) Surat yard and warehouse Rs115.77 lakh ($235,000) Baroda general and administrative costs Rs1,072.11 lakh ($2.2m) Environmental Impact Assessment Programme Rs7.28 lakh ($14,000) 3D/2D seismic programme Rs3,176.20 lakh ($6.49m) Reprocessing of seismic data Rs48.50 lakh ($99,000) Test separator Rs67.90 lakh ($138,000) Total Rs11,241.76 lakh ($22.98m) In 2001-02, Niko spent Rs10.61cr ($2.2m) for its work programme on this block. The biggest expense of Rs7.97cr ($1.6m) was on 2D and 3D surveys.

Niko is spending $14,829 per sq km for 3D acquisition and processing and $4,980 per line km for 2D acquisition and processing.