Galoc Field - Service Contract 14 Block C1

• Working Interest: 22.879% (non-operator)
• Field Operator: Galoc Production Company (GPC)

The Galoc oil field is situated in Block C of Service Contract 14 (SC 14), in the North West Palawan Basin, offshore Philippines. The field is located around 70 km west of Culion Island in a water depth of approximately 320 metres. The reservoir depth is 2,100 - 2,200 metres and has a 57+ metre gross oil column consisting of early Miocene turbidite sandstone with 16+% average reservoir porosity.

Development of the field commenced in October 2007 with the drilling of a pilot appraisal well followed by two horizontal development wells. The wells were completed and flowed in February 2008 after which they were tied back via subsea riser to the Floating Production Storage and Offtake (FPSO) vessel Rubicon Intrepid. First production from the FPSO was achieved on 9 October 2008.

The field produces a 35° API, 1.6% sulphur content crude that is marketed within the southeast and north Asian regions.

Nido and its Joint Venture partners are currently assessing potential further development options for the field and a number of nearby exploration and appraisal opportunities.

Nido A and B Fields - Service Contract 14 Block A

• Working Interest: 22.49%
• Field Operator: The Philodrill Corporation

The Nido oil field is located in Block A of Service Contract 14 (SC 14), at the southern end of the North West Palawan Basin, approximately 60 km west of Palawan Island.

Nido-A was discovered in July 1977 with the drilling of Nido-A1. Nido-B was discovered in January 1978 with the drilling of Nido-B1. Both fields comprise pinnacle or atoll type carbonate reefs generally of the Lower Miocene age.

In mid 1979 three additional development wells (Nido-A2, -B2 and -B3) were completed and a production platform was installed at Nido-A and Nido-B standing in waters of 43 metres and 78 metres, respectively.

Both fields were brought into production in February 1979 with production peaking in mid to late 1979 at over 13,000 bopd and 29,000 bopd for Nido-A and Nido-B, respectively. Both fields were switched to a cyclic production regime in mid 1984. Total oil production from both fields has passed 18.5 million barrels of oil.

The Nido fields produce crude oil with a gravity of 27° API and 2% sulphur content, marketed into the Philippines refineries with the Matinloc crude.

Matinloc Field - Service Contract 14 Block B

• Working Interest: 28.283%
• Field Operator: The Philodrill Corporation

The Matinloc oil field is located in Block B of Service Contract 14 (SC 14) approximately 50 km northwest of Palawan Island and 54 km north of the Nido oil field in the Philippines.
Matinloc is situated in 25 metres of water and was discovered in January 1979 with the drilling of the wildcat Matinloc-1 well, intersecting a carbonate reef build-up. The field is mapped as a four-way closure with a gross hydrocarbon column of more than 91 metres.

Matinloc-2 and Matinloc-3 were drilled directionally from the Matinloc-1 location in early 1980 and 1982, respectively. The Matinloc production platform was installed in June 1982 and production commenced in July of that same year with a peak production rate of 6,800 bopd. Cyclic production began on Matinloc in January 1997.

Since production start-up Matinloc has produced over 12 million barrels of oil with an average crude oil gravity of 43^o API. The Matinloc crude is marketed to Philippine refineries together with the oil produced at the Nido oil fields.

West Linapacan A and B Oil Fields - Service Contract 14 Block C2

• Working Interest: 22.28%
• Field Operator: Pitkin Petroleum

West Linapacan is located in 350 metres of water, approximately 60 km offshore from Palawan Island in Service Contract 14 (SC 14) Block C in the Palawan Basin, Philippines. It is comprised of two main oil bearing structures - West Linapacan A and B - and several seismic leads.

The West Linapacan A and B structures are northwest southeast trending, fault-bounded anticlines approximately 7.6 km apart. Both fields produce 32 - 34^o API oil from the fractured Nido limestone reservoirs. The West Linapacan A field produced for just over three years in the early 1990s but has been shut in since early 1996.

West Linapacan A was discovered in the early 1990s and, following the drilling and completion of three vertical subsea wells, an FPSO-type development was employed to produce from the field from 1992 through to early 1996. The field had a peak production rate of over 18,000 bopd. It is believed that the field's production rates were held at a level too high for the reservoir to sustain and early water breakthrough occurred. This has most likely resulted in a significant portion of the potential recoverable oil from the field being bypassed during this production phase.

Nido and its Joint Venture partners see West Linapacan A as a potential redevelopment opportunity and West Linapacan B as a potential development opportunity. Work by the Joint Venture is ongoing to assess the likely recoverable volumes and the most appropriate method of redevelopment/development of these two oil resources. Results from this work will be assessed by the Joint Venture in 2010 following which a decision will be made on possible activities in the block.