Niko Resources Ltd.

Niko Resources Ltd.

November 08, 2011 09:04 ET

Niko Signs Multi-Year Deepwater Rig Contract for Indonesia

CALGARY, ALBERTA--(Marketwire - Nov. 8, 2011) - Niko Resources Ltd. ("Niko") (TSX:NKO) is pleased to announce that it has signed a contract with a subsidiary of Diamond Offshore ("Diamond") – a major deepwater drilling contractor.

This is the largest deepwater exploration contract in the history of Indonesia and 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 $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 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.

November 8, 2011

Certain statements in this press release are forward-looking statements. Specifically, this press release contains forward-looking statements relating to management's approach to operations, estimates of future sales, production and deliveries, business plans for drilling and development, estimated amounts and timing of capital expenditures, anticipated operating costs, royalty rates, cash flows, transportation plans and capacity, anticipated access to infrastructure or other expectations, beliefs, plans, goals, objectives, assumptions and statements about future events or performance. The reader is cautioned that the assumptions used in the preparation of such information, although considered reasonable by Niko at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Such factors include, but are not limited to: general economic, market and business conditions; industry capacity; competitive action by other companies; fluctuations in oil and gas prices; the results of exploration and development drilling and related activities; the uncertainty of estimates and projections relating to productions, costs and expenses; uncertainties as to the availability and cost of financing; fluctuations in currency exchange rates; the imprecision in reserve estimates; risks associated with oil and gas operations, such as operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the weather in the Company's area of operations; the ability of suppliers to meet commitments; changes in environmental and other regulations; actions by governmental authorities including changes in laws and increases in taxes; decisions or approvals of administrative tribunals; risks in conducting foreign operations (for example, political and fiscal instability or the possibility of civil unrest or military action in countries such as India and Bangladesh); the effect of acts of, or actions against international terrorism; and other factors, many of which are beyond the control of Niko. There is no representation by Niko that the actual results achieved during the forecast period will be the same in whole or in part as those forecast.

Contact Information

  • Niko Resources Ltd.
    Edward S. Sampson
    Chairman of the Board, President & CEO
    (403) 262-1020

    Niko Resources Ltd.
    Murray Hesje
    VP Finance & CFO
    (403) 262-1020