Niko Resources has signed a contract with a subsidiary of Diamond Offshore.
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 (UDW semisub) is being contracted for a four year term with the option of one additional year. The Monarch is a 5th generation semisubmersible 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.
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