Eni Plugs and Abandons Lebah-1 Well Offshore Indonesia

Eni Plugs and Aban dons Lebah-1 Well Offshore Indonesia

Niko Resources has announced that drilling operations on the Lebah‐1 well, located on the North Ganal PSC in the Makassar Strait of Indonesia, have been completed by PSC operator Eni.

The well reached a vertical depth of 11,585’ while testing all the pre drill geologic objectives. The well has been plugged and abandoned and the Discoverer Seven Seas is moving off location. This was the first of two largely carried wells to be drilled on the 2437km2 North Ganal Block.

The Lebah‐1 well targeted a series of Upper Miocene – Pliocene deep water channel sands analogous to those found in nearby discoveries by Eni and partners. Although Lebah drilled over 800’ of reservoir quality sands distributed over a number of intervals only one of the sands was hydrocarbon bearing. The Upper Miocene 11,500’ sand had 12’ of gas at the top of a 41’ gross sand interval.

Additional interpretation of the newly reprocessed seismic data by Eni, integrating the results from Lebah‐1, will allow the Joint Venture Partners to evaluate the updip resource potential of the 11,500’ and other sands. Additional possible drilling locations have already been identified within this depositional trend. As well, the significant resource potential of deeper Middle Miocene sands will be the subject of future drilling.

Press Release, September 12, 2012

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