PT Apexindo Wins Drilling Contract from Santos

The contract is expected to commence in last quarter of 2006 will be carried out by PT Apexindo's jackup Rani Woro, and will continue for a period of 3 years, plus options. The contract is valued at approximately US $170 million.

"We are delighted to have been able to obtain this contract, it's the largest value contract in the Company's history. Moreover considering that the extended period of the contract, around 3 years, this achievement is in line with Apexindo's strategy to focus on major long term resource development projects.", according to Hertriono Kartowisastro, Apexindo's President Director.

The current demand trend for jackup rigs worldwide is very high, as exploration and production activities by oil and gas companies intensify. The worldwide jackup fleet has virtually reached its maximum utilization rate, and the supply of newbuild jackup rigs is very limited. This condition has triggered a major increase in jackup dayrates.

Agustinus B. Lomboan, the Company's Finance Director explains, "The signing of this contract marks a major achievement for the Company's, to attain and secure for the long term a contract encompassing the new high day rates especially compared to the low dayrates from the Rani Woro's contracts in previous years. The Rani Woro is now fixed in a very financially favorable position, and we expect that this condition will significantly improve the Company's revenue and profit margins, which will be booked effectively by 2007."

The Company constantly endeavors to give good returns to its Shareholders, by continuously maximizing its fleet performance, as well as promoting efficiency in every operational aspect to increase profitability.

"Through continuous cost efficiency with good operational management, also our timely fleet expansion, and the new major rise in rig dayrates, the Company's profitability is assured, as are better returns to Shareholders," adds a confident Agustinus.