Niko Resources Ltd. has entered into an agreement with the Kurdistan Regional Government of Iraq to acquire an additional 10% net working interest in the Qara Dagh Production Sharing Contract (the “PSC”). As a result of the acquisition, Niko will hold an aggregate 37% net working interest in the PSC.
Niko has completed the acquisition and processing of the initial 2D seismic survey. Preliminary evaluation of the seismic data identifies a 60 km subsurface structure extending almost the entire length of the block. Analysis of the seismic data is underway and the first drilling location is being selected.
Of interest, the northwest corner of the Qara Dagh block is adjacent to the Heritage Oil Ltd. block on which Heritage recently announced the successful drilling and testing of the Miran West-1 well. On the southeast corner of the Qara Dagh block Western Zagros is currently drilling an exploration well.