Cauvery question mark for Niko
Doubts are growing over Cauvery basin NELP-V block CY-ONN-2003/1 in Tamil Nadu operated by Canadian explorer Niko Resources.
So far Niko has drilled four dry wells on this 957-sq km block leading to the inevitable conclusion the company might have no option but to relinquish the block. Niko hired a rig last October from Dubai-based ETA to drill two â€کfirm’ wells and one â€کoptional’ well but after both â€کfirm’ wells turned out dry Niko chose to discontinue drilling and released the rig in November.
“Niko is definitely disappointed with these two wells,â€‌ confirms a source. But it has not yet announced any plans to quit the block.
Officially, Niko says it is conducting geological and geophysical studies of its drilling results from these recent wells so its management can decide the best way forward. Niko is currently in the extended Phase-I at CY-ONN-2003/1, which ends in March 2011.
If it enters Phase-II, despite the disappointments, it must drill two more wells.
