Niko to begin Cauvery exploration ASAP

Vol 10, PW 21 (22 Feb 07) News in Brief

Niko Resources wants to begin exploration drilling at its onland Cauvery basin block CY-ONN-2003/1 as soon as possible.

“We would like to begin drilling as early as June (this year),â€‌ Niko tells us. “But we are reviewing the cost effectiveness of mobilising and carrying out a drilling operation in the monsoon.

â€‌ If this option is not cost effective, says Niko, “drilling will begin after the monsoonâ€‌ in mid-October. Niko is committed to drilling five wells during the three-year Phase-I of the work programme at this 975-sq km oil-prone NELP-V block, where it is operator with 100% equity, and for which a PSC was signed on 23rd September 2005.

Niko must also acquire, process and interpret 550-sq km 3D at the block. Torun Geofysika of Poland has already shot two thirds of the 3D survey and the rest will be acquired in April or May.

Niko has carried out an informal rig tender and is examining several possible rigs that will be available for the drilling campaign later this year.