Perth, Oct 2, 2008 (ABN Newswire) - Kairiki Energy Limited (ASX:KIK) advises the ASX release issued by the operator of Service Contract 54 ("SC 54"), Nido Petroleum Limited.

Nido Petroleum Ltd and its Joint Venture partner, Kairiki Energy Ltd (Kairiki) are pleased to provide this progress report on the Yakal-1 discovery in SC54, located in the NW Palawan Basin, offshore the Philippines. As of the date of the last report a minimum oil column of 78 metres (and up to a maximum of 93 metres) had been confirmed with wireline logging and a 7" liner was being installed.

Since that report:

- The 7" liner has been successfully run;

- Yakal-1 has been capped and prepared for completion as a production well for extended well testing at a later date; and

- The rig is undertow to the Tindalo-1 location.

During the SC54 drilling campaign, daily reports authored by the Philippines 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 drilling campaign.