Niko Starts Indonesia Drilling Program

Niko Resources Ltd. has announced commencement of its exploration drilling program in Indonesia and participation in the company's twenty-first block in the country.

The compnay will partner with Zaratex N.V. in the 5908 sq km Lhokseumawe PSC in western Indonesia. The block is located directly adjacent to the giant Arun field and associated LNG plant. Drilling is to commence in the shallow water portion of the block in April with two wells.

The Candralila-1 and Ratnadewi-1 prospects will be drilled back to back and if successful will be monetized relatively quickly by accessing the existing extensive local infrastructure.

Niko’s contracted deepwater rig, the Diamond Ocean Monarch, is scheduled to arrive in Lhokseumawe in September to drill the Jayarani-1 well, the first in its planned program of more than 25 deepwater wells in Indonesia.