CALGARY, ALBERTA -- Niko Resources Ltd. ("Niko") (TSX: NKO) announced on Nov. 8 that it has signed a contract with a subsidiary of Diamond Offshore, a major deepwater drilling contractor.

This is the largest deepwater exploration contract in the history of Indonesia, according to a company news release, and it will 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.

The Ocean Monarch is being contracted for a four-year term with the option of one additional year. The Monarch is a fifth-generation semi-submersible and is capable of operating in water depths up to 10,000 feet and a drilled depth of up to 35,000 feet. The contract is in excess of $700 million.

The contract is to commence between June 1 and Aug. 15, 2012.