Niko signs multi‐year deepwater rig contract for Indonesia

Canadian oil, gas company Niko Resources Ltd. Announced on Tuesday that it has signed the largest deepwater exploration contract in the history of Indonesia with a subsidiary of Diamond Offshore ? a major deepwater drilling contractor.

The company said the contract will dramatically increase Indonesia?s opportunities for major hydrocarbon discoveries in deepwater.

Niko is Indonesia?s largest deepwater acreage holder and currently has interest in 16 Production Sharing Contracts (PSC) and will utilize this rig to explore drilling its very diverse and extensive exploration portfolio.

The Ocean Monarch is being contracted for a four year term with the option of one additional year. The Monarch is a 5th generation semi‐submersible and is capable of operating in water depths up to 10,000 feet and a drilled depth of up to 35,000 ft. With the option year exercised, this contract is in excess of US $700 million.

?Niko has assembled a very experienced drilling team which has drilled more than 150 deepwater wells worldwide. This contract removes the risk of rig availability for the Company?s planned massive drilling campaign,? the company said.

The rig will complete its current contract and a hull inspection (required every five years) will be completed before Niko?s contract begins. The contract is to commence between June 1 and August 15, 2012. (alex)