Kairiki Energy Limited (ASX:KIK) Update On SC 54A Tindalo Operations

Perth, Sep 6, 2010 AEST (ABN Newswire) - Kairiki Energy Limited (ASX:KIK) (PINK:KAIRF) is pleased to announce SC 54A Tindalo Operations Update.

Nido Petroleum Limited (ASX:NDO), as Operator of Service Contract 54A (SC 54A), has commenced the Tindalo-1 well intervention and remediation programme

Since the previous update on 30 August 2010:

- The support vessel M/V Pacific Ariki arrived at the Tindalo location on 5 September with the items necessary for the well intervention and equipment and materials are being transferred from the support vessel to the rig;

- The Tindalo-1 well has now been shut-in and re-entry operations have commenced;

- Diagnostic logging will be undertaken early in the programme to determine the selection of the most appropriate option to remedy the water influx into the well; and

- The well intervention and remediation programme is scheduled to take 10-17 days to complete.

Other operational highlights include:

- Some 196,000 barrels of oil (@ 60 degree Fahrenheit) are now in the storage tanks of the FSO; and

- The offtake of the first cargo is currently scheduled for 16-18 September, subject to weather.

Nido will provide a further update on the progress the in-field operations once the results of the diagnostic logging have been analysed.

Contact

Dr. Mark Fenton Managing Director Kairiki Energy Limited Tel: +61-8-9388-6711 http://www.kairikienergy.com