Nido Petroleum gets 1-yr extension to drill in Palawan

MANILA, Philippines - Australian firm Nido Petroleum Pty. Ltd. has been given another 12-month extension to continue its Sub-Phase 3 oil exploration activities at the 13,440-square kilometer exploration block in offshore northwest Palawan.

PNOC Exploration Corp. (PNOC-EC), Nido Petroleum’s joint venture partner in exploring and drilling for oil and gas in Palawan, approved the extension.

The 12-month extension, which will run until end-January 2014, was necessary to acquire additional seismic data over a number of prospects in the northern portion of the area covered by Service Contract 58.

Likewise, PNOC-EC allowed Nido Petroleum to proceed with Sub-Phase 3, which in turn is part of a farm-in agreement. The sub-phase of the exploration program with the Department of Energy (DOE) calls for the drilling of an offshore exploratory well.

The SC 58 joint venture earlier identified the current window to drill the commitment well to be between June and October 2012. The extension allows further leeway to identify the drill site which, in turn, will depend on a number of prospects by a joint geo-scientific group and rig availability.

Earlier, the DOE gave a one-year extension to Nido Petroleum, or up to Dec. 21, 2012, “to allow Nido to do additional seismic work and de-risk this deepwater block.”

Nido Petroleum has over two million hectares of exploration and development assets in the northwest Palawan basin.

Nido Petroleum entered into a farm-in agreement with PNOC-EC in 2006 for a 50-percent participating interest in SC 58.

Under the terms of the farm-in agreement, Nido Petroleum will acquire the 50-percent interest upon completing a work program comprising three sub-phases.