Nido Petroleum Limited

Skip to:

• Skip to Main Menu
• Skip to Main Content

Main Menu

• About Nido
  • The Team
    • The Board
    • Perth Office
    • Manila Office
  • Share Price
  • Corporate Directory
  • Top 20 Shareholders
  • Capital Structure
  • Corporate Governance
  • HSSE Policy
  • Nido in the Community
  • Employment Opportunities
• Assets and Strategy
  • Our Strategy
  • Philippines
    • Nido & Matinloc Oil Fields
    • Galoc Oil Field
    • West Linapacan
    • SC54
    • SC58
  • Cool Energy
• Investors and Media
  • ASX Announcements
  • Quarterly Reports
  • Annual Reports
  • Presentations
  • Media Coverage
• Photo Gallery
• Contact Nido
• Search

Main Content

Assets & Strategy: Philippines: Service Contract 54

• SC54 Fact Sheet

On 5 August 2005 Nido Petroleum announced that the Philippines Department of Energy (DOE) has awarded Nido 100% equity and Operatorship in a new Service Contract, SC54, in the Palawan Basin.

SC54 is located adjacent to the southern end of Nido's existing SC14 and SC6B licenses and is on trend with Shell's 600 million BOE Malampaya producing gas field. It covers some 537,616 hectares in this proven hydrocarbon basin.

On 20 December 2005, after completing its commitment to 6 months and US$220,000 including geological and geophysical evaluation of SC54, Nido confirmed its intention to enter sub-phase 2 of the Service Contract.

On 20 March 2006 Nido accepted a farm-in offer from the Perth-based Yilgarn Gold Limited (Yilgarn) to farm in to the SC54 acreage. Under the farm-in terms Yilgarn will earn a total 40% working interest in the SC54 contract area upon the completion of two stages. In the first stage, Yilgarn will fund the acquisition and processing of seismic data on a 4:3 promote basis. This is based on estimated costs of US$6 million for the seismic programme. Following the technical evaluation of the seismic data, Yilgarn is required to fund the drilling of a well on a 2:1 promote basis as the second stage to earn its 40% working interest. This is based on estimated costs of US$15 million for the well.

Nido recognised the significant advantages to be gained by further enhancing its existing seismic database with a modern 2D and 3D regional acquisition employing the latest technology. With the support of the Philippine Department of Energy, Nido secured an amendment to SC54 to allow these surveys to take place in 2006.

On 5 July 2006 Nido, in conjunction with Joint Venture partner Yilgarn, announced that it had awarded a 3D seismic survey in SC54 to Veritas Geophysical. The approximately 635 sq. km survey will be acquired using the latest solid streamer technology and state of the art acquisition and processing techniques and covers three potential targets:

1. The Coron North Prospect;
2. The untested oil shows at Coron-1; and
3. Princesa, a Miocene Pagasa turbidite lead.

The seismic exploration work programme commenced in mid-2006 with preparations for the 3D survey along with a 550 km, 2D seismic acquisition (to be conducted concurrently with a similar seismic programme in Nido's SC 58.)

Nido has held acreage in the Philippines since 1995 and has developed a substantial geoscience database including licensed 3D and 2D seismic data, and comprehensive well and field data.

Using this older data multiple play opportunities have been identified in SC54. In particular, the identified Pagasa turbidite reservoirs are analogous to the large oilfields discovered in the Campos Basin, offshore Brazil in recent years. In addition, SC54 includes several Miocene Age carbonate prospects and leads. The newer seismic data will be used to rank these opportunities and an inventory of the prospects and leads, and an exploration drilling programme will be prepared.

The SC54 work programme is ongoing in Nido's Perth and Manila offices.