MELBOURNE, Australia, September 22 /PRNewswire/ --
Gaffney Cline and Associates (GCA) have completed their independent review of the Galoc oil field, updating the reserves certification with the information obtained during the development drilling and well testing.
This review has resulted in a material uplift across all three categories of reserves -- proved, probable and possible. Reserves at the "proved" level, which represents the 90% confidence level, have increased by 64% which provides confidence in a stronger, longer-term production profile for the field.
Ms. Joanne Williams, Nido's Deputy Managing Director said, "The data acquired during the drilling of the pilot well and the two horizontal production wells were very encouraging and we are now very pleased that GCA has confirmed our expectations of the Galoc oil field's productive potential. Not only has the low side moved significantly closer to the previous 2P best estimate of the potential in the Galoc 3 and Galoc 4 areas, but the increase in the 3P reserves (which is included in the Phase 2 development) has highlighted the upside potential of the field available through further drilling."
The petroleum fiscal regime in the Philippines is one of the best in Asia offering a favourable contractor take and numerous other fiscal incentives. Given that the Galoc oil field development has a large cost recovery pool the resulting production will realise very high profitability metrics per barrel of oil produced, which will be among the highest in the industry.
Nido's Chief Executive Officer, Mr Jocot de Dios said, "When it comes to value and cashflow, no barrel of oil reserves is the same as any other -- there is more "bang" for the reserves "buck" in the Philippines and this is one of the reasons why Nido chose to focus its interests here. Galoc is expected to pay back Nido's investment in only a few months, and especially in the following 12 to 24 months, the cashflow returns from Galoc will be substantive."
For more information please contact: Ms. Joanne Williams Deputy Managing Director Ph: +61-8-9474-0000 F: +61-8-9474-0099 www.nido.com.au
Web site: http://www.nido.com.au
Ms. Joanne Williams, Deputy Managing Director of Nido Petroleum, +61-8-9474-0000, fax: +61-8-9474-0099