Australia-listed Nido Petroleum is preparing to drill a multi-million barrel potential prospect on service contract 63 in the Palawan basin, off the coast of the Philippines.
Nido and its joint venture partner PNOC Exploration have approved the work plan and budget to drill the Baragatan prospect, with Nido acting as technical operator during the drilling phase. Nido and PNOC each hold an equal 50:50 stake in SC 63. “I am pleased the joint venture has approved the drilling of the high impact Baragatan oil prospect, in SC 63,”
Nido managing director Philip Byrne said. “We are fully funded for this well from current cash reserves and on-going production, and we look forward to securing a rig and updating the market accordingly on timing.” Nido said the prospect was well-positioned to receive oil charge from a large syn-rift graben located immediately to the south of the Baragatan structure, which is interpreted to contain thick, mature oil-prone source rocks. It added the strategic environmental plan clearance from the Palawan Council for Sustainable Development had already been secured for exploration activities within the block, as well as key long lead items for the well.
The gross cost of the well is estimated at between USD 22M and USD 25M, with Nido funding its share of costs from its current cash reserves and on-going production from the Galoc oilfield.