Niko Resources has acquired a new exploration block in offshore southeast Sulawesi, Indonesia. The block covers almost 5,000 square kilometres and Niko will have a 25% non-operated working interest.
The block was recently awarded to Marathon and its partners and Niko will earn a 25% equity from an affiliate of Black Gold Energy "Black Gold". Similar to the previous four blocks Niko has acquired in Indonesia, this prime acreage is located primarily in deep water and was selected from extensive geologic and geophysical evaluations covering one million square kilometres.
The acquisition of this block is a continuation of Niko's strategy to establish Niko as a leading company in the exploration of the largely unexplored deep water areas offshore Indonesia. Considering the overwhelming success in finding oil and gas in shallow water and onshore areas of Indonesia, there is potential that Indonesian deep waters will provide successes similar to those seen in the deep waters of India, Brazil, Gulf of Mexico and West Africa to mention a few.
As with the other deep water blocks Niko has acquired in Indonesia, this block is associated with onshore areas containing significant gas reserves.