PERTH, Australia, December 19 /PRNewswire/ --
Nido Petroleum is pleased to announce that the appraisal programme for Galoc, the first offshore oil development in the Philippines for almost seven years, has been completed and the interim results look very positive.
Data acquired from the appraisal programme is undergoing petrophysical analysis combining the log and pressure data with the recovered core, the results of which will be used to optimise the placement of Galoc 3 in the southern portion of the field.
Whilst work is still ongoing, the results to date have confirmed the findings of the predevelopment studies.
Deputy Managing Director Joanne Williams is delighted with the results and says that confirmation of oil in place has validated Nido's positive view of the Galoc development.
"The pilot hole has achieved all of our data gathering objectives and analysis is consistent with the Gaffney Cline and Associates (GCA) reserves certification," Ms. Williams said.
"Our subsurface team is gratified that it has confirmed our predevelopment studies and GCA is now reviewing all new data as we take the next steps towards recertification of the reserves," Ms. Williams said.
Some 38 metres of reservoir rock core was cut using a 'hollow' drill bit, which encases a cylinder of reservoir rock, and recovered to the surface during the drilling programme.
Preliminary reports from Nido staff say the core confirmed the presence of oil in the reservoir and there is a greater proportion of productive reservoir to non-productive reservoir rock (i.e. net to gross) than was originally expected in the pilot well area.
Reservoir average porosity is estimated to be within the predevelopment study range of 13-19%. This is another confirmation of the reservoir's potential to contain the estimated volumes of oil.
Wireline logs were acquired to determine rock type and properties, determine the producible reservoir and test reservoir pressures.
The results from the petrophysical analysis of these logs have been very encouraging, as they indicate an oil column at the pilot well location that is as anticipated in pre-development studies and further validates the development plan and estimate of oil volumes.
Fluid samples were collected to confirm the presence and type of oil in the reservoir rock. The samples have been sent to Schlumberger laboratories to be analysed to provide greater detail on the oil quality and properties.
Following some interruptions to the drilling program, due in large part to the effects of three typhoons and mechanical problems, project costs have risen, however there has been minimal impact to the schedule.
"We now estimate the project cost to increase by US$4 million (net), which reflects a risk which is part and parcel of oil field developments, however our schedule is still on target and I am excited to report that first oil from Galoc is expected in March 2008, a mere three months away," Ms. Williams said.
Nido has a 22.279% working in interest in Galoc oil field.
For more information please contact: Sascha Stone Media Relations Officer +61-8-9473-0546 +61-8-9473-0576 firstname.lastname@example.org
Sascha Stone, Media Relations Officer, for Nido Petroleum, +61-8-9473-0546, or +61-8-9473-0576, email@example.com