Nido gearing up for West Calamian oil exploration

MANILA, Philippines - Australian oil firm Nido Petroleum Ltd. is gearing up for exploration of the West Calamian prospect in Northwest Palawan, adjacent to the Malampaya gas field.

The company said the Energy Department has approved the application of the Service Contract (SC) 58 consortium to acquire a deepwater sea-bed coring and multi-beam program.

Sea-bed coring is an offshore exploration technique used to detect hydrocarbon seepage from the sub-surface and is a proven hydrocarbon charge de-risking tool in deepwater basins. Detection of hydrocarbons in cores collected from multiple sea-floor sites is indicative that an active petroleum system exists within the sub-surface, consequently reducing charge risk and assisting in the selection of the lowest risk prospects for drilling.

According to the company, a high resolution multi-beam survey will also be acquired to aid in accurately locating the sea-bed cores. Nido plants to start drilling at the West Calamian prospect by 2012.

“In order to complete the acquisition, processing and interpretation of the sea-bed coring and multi-beam program ahead of the sub phase 3 well commitment, the Energy Department has also granted the SC 58 joint venture an 18 month extension to the sub phase. Consequently, sub phase 3 will now extend through to Jan. 11, 2012,” Nido president Emmanuel J.V. de Dios said.

SC 58 is referred to as the West Calamian block. It is a deepwater acreage covering an area of 13,440 square kilometers. The Energy Department awarded the contract to PNOC Exploration Corp. on Jan. 12, 2006 and farmed out half of its interest to Nido. PNOC Exploration and Nido holds a 50 percent interest each, with the latter as the operator of the block.

Nido has over 29,450 sq km of exploration and development assets in the Northwest Palawan Basin.

Its core production asset includes a 22.879 percent interest in the Galoc oil field. Galoc lies within SC 14 in 300 meters of water, some 60 km offshore of Palawan Island. The Galoc reservoir lies 2,200 meters below the sea floor and started production on Oct. 9, 2008.

The oil exploration firm has also completed drilling in the neighboring exploration assets (SC 54) resulting in two new oil discoveries at Yakal and Tindalo, a 100 percent strike rate that punctuates a drought of over 14 years in the Philippines.

Nido intends to fasttrack the Tindalo development, targeting its first oil flow by early 2010.