Niko Resources Ltd. is now entering into the most significant exploration drilling program in its corporate history with the Ocean Monarch deepwater semi-submersible drilling rig expected to begin moving to the Jayarani-1 location in the Lhokseumawe block in Indonesia on October 1, 2012.

This rig has been contracted for a four-year term with an option for one additional year and will be utilized to drill numerous prospects in the Company's extensive exploration portfolio in Indonesia. As such, the board of directors have decided to suspend the Company's quarterly dividend. The timing and level of future dividends will be reviewed periodically by the board of directors.

In August 2012, the "Management Committee" for the D6 Block, comprised of two representatives of the Government of India (GOI) and one representative from each of the joint venture partners, Reliance Industries Limited (the "Operator"), BP Exploration (Alpha) Ltd., and ourselves (collectively, the "Contractor"), agreed on the revised field development plan ("FDP") for the MA oil and gas field which had been submitted in February 2012.

Tags: Niko Resources Ltd.