Perth, Sept 24, 2008 (ABN Newswire) - Kairiki Energy Limited (ASX:KIK) releases the Yakal-1 progress report, below is an attached copy of the ASX release issued by the operator of Service Contract 54 ("SC 54"), Nido Petroleum Limited.

Kairiki Energy Limited has 40% participating interest in SC 54.

Yakal-1 Progress Report

Nido Petroleum Ltd (Nido) and its Joint Venture partner Kairiki Energy Ltd (Kairiki) are pleased to provide this progress report on the Yakal-1 well currently drilling in SC54, located in the NW Palawan Basin, offshore the Philippines.

As of the date of the last report, the Yakal-1 well was spud at 3:30am on 8 September 2008. Activities completed since that report include:

8 September the 30" conductor was driven to its planned measured depth of 216 mRT (metres below the rig table) 12 September 17 1/2" hole section was drilled through to the casing point at the top of the Pagasa Formation at a measured depth of 1242 mRT 14 September 13 3/8" casing was run and cemented in the 17 1/2" hole 15 September Preparations are currently being made to drill ahead in 12 1/4" hole.

The well program calls for the following next steps:

- Drill ahead in 12 1/4" hole through the Pagasa Formation to the casing point at the top of the Nido Formation at an approximate depth of 1815 mRT

- Run and cement 9 5/8" casing in 12 1/4" hole

- Drill ahead through the Nido Formation (primary reservoir target) in 8 1/2" hole to an approximate total well depth of 2006 mRT

- Run wireline logs to fully evaluate the Nido Formation

- If the wireline logs demonstrate there are non-commercial volumes of hydrocarbons or the well is dry, the well will be plugged and abandoned (P&A)

- If the wireline logs demonstrate potentially commercial hydrocarbon volumes, the well will be suspended pending extended well testing

- Rig down and move to Tindalo-1.

Yakal-1 is expected to take approximately three weeks to drill in total and during this time the daily drilling reports authored by the Philippine Department of Energy are available through a link on Nido's homepage www.nido.com.au or at www.pse.com.ph. Nido will continue to issue "milestone" progress reports to the market as appropriate during the campaign.