Niko Resources Ltd. provide an offshore drilling update.

In Indonesia:

• The Ratnadewi-1 well has reached a vertical depth of 1,322 meters. Power generator problems led to the rig losing electric power and as a result logging was possible only to a depth of 1,180 meters. MDTs (formation pressure measurements) were taken and indicated an oil gradient. Fluid samples were recovered from two sample points with both sample points containing light oil as well as formation water and mud filtrate. Evaluation of the well is continuing with sidewall coring and further MDTs of additional zones prior to casing and drill stem testing. New generators are being delivered and the rig is expected to be fully operational early next week. • The Discoverer Seven Seas deepwater rig is arriving earlier than previously estimated and is now expected to commence drilling the Lebah prospect in the North Ganal block on July 17th. • The Ocean Monarch is expected to arrive in Singapore between July 28th and August 4th to begin a hull inspection that is planned for approximately 35 days. As a result the rig is expected to commence operations for Niko during the first week of September.

Tags: Niko Resources Ltd.