Nido Petroleum Limited is a Philippine focused oil and gas company with a dominant position in the North West Palawan Basin, Philippines, holding a net acreage position of 14,641km2. The Basin is a highly prospective address for oil and gas exploration with a history of multiple discoveries.
Nido has an impressive asset base with a mix of currently producing assets and attractive exploration opportunities. A high-impact five well drilling program, announced at the May 2010 AGM, is set to commence in May 2011 with the drilling of the Gindara-1 well in Service Contract 54B. A second well will be drilled in Service Contract 63 late 2011-early 2012. The Company has a 22.28% working interest in the Galoc field (Service Contract 14 C-1) which currently produces about 7,000 bbls of oil per day, gross.
Galoc Field - Service Contract 14 Block C1
• Working Interest: 22.879% (non-operator)
• Field Operator: Galoc Production Company (GPC)
The Galoc oil field is situated in Block C1of Service Contract 14 (SC 14), in the North West Palawan Basin, offshore Philippines. The field is located around 70 km west of Culion Island in a water depth of approximately 320 metres. The reservoir depth is 2,100 - 2,200 metres with a 57+ metre gross oil column consisting of early Miocene turbidite sandstone with 16+% average reservoir porosity.
Development of the field commenced in October 2007 with the drilling of a pilot appraisal well followed by two horizontal development wells. The wells were completed and flowed in February 2008 after which they were tied back via subsea riser to the Floating Production Storage and Offtake (FPSO) vessel Rubicon Intrepid. First production from the FPSO was achieved on 9 October 2008.
The field produces a 35° API, 1.6% sulphur content crude that is marketed within the southeast and north Asian regions.
Nido and its Joint Venture partners are currently assessing potential Phase 2 options for the development of the Galoc oil field. Reprocessed PSDM Galoc 3D seismic data was integrated with previous 3D mapping and in this context new Top Nido depth maps were generated by the Operator and Nido. Various potential development scenarios involving one to two horizontal wells with possible pilot holes are being considered by the Joint Venture, but no decisions on the optimal development scenario have been made as of yet.
A biostratigraphic review of key field wells was also completed by Nido on behalf of the SC 14C1 Joint Venture to better constrain the vertical and lateral position of the G-3 and G-4 wells within the Galoc Clastic Unit (GCU) stratigraphic sequences and provide an improved realisation of the 3D-based structural model over the western flank of the field. It is anticipated that this work will culminate in a revised view of the existing and future potential of the Galoc development and will be critical in determining the scope and value of Phase 2 development activities.
An independent subsurface review was also completed by Nido on the Galoc North structure which lies immediately north of the Galoc oil field. Preliminary seismic interpretation indicates that a common oil-water contact could exist between the Galoc field and the Galoc North structure which would significantly upgrade Galoc North as a potential low risk drilling target. Drilling of the Galoc North prospect could potentially be combined with Phase 2 development activity.
Nido A and B Fields - SeNrvice Contract 14 Block A
• Working Interest: 22.49%
• Field Operator: The Philodrill Corporation
The Nido oil field is located in Block A of Service Contract 14 (SC 14), at the southern end of the North West Palawan Basin, approximately 60 km west of Palawan Island.
Nido-A was discovered in July 1977 with the drilling of Nido-A1. Nido-B was discovered in January 1978 with the drilling of Nido-B1. Both fields comprise pinnacle or atoll type carbonate reefs generally of the Lower Miocene age.
In mid 1979 three additional development wells (Nido-A2, -B2 and -B3) were completed and a production platform was installed at Nido-A and Nido-B standing in waters of 43 metres and 78 metres, respectively.
Both fields were brought into production in February 1979 with production peaking in mid to late 1979 at over 13,000 bopd and 29,000 bopd for Nido-A and Nido-B, respectively. Both fields were switched to a cyclic production regime in mid 1984. Total oil production from both fields has passed 18.5 million barrels of oil.
The Nido fields produce crude oil with a gravity of 27° API and 2% sulphur content, marketed into the Philippines refineries with the Matinloc crude.
Matinloc Field - Service Contract 14 Block B
• Working Interest: 28.283%
• Field Operator: The Philodrill Corporation
The Matinloc oil field is located in Block B of Service Contract 14 (SC 14) approximately 50 km northwest of Palawan Island and 54 km north of the Nido oil field in the Philippines.
Matinloc is situated in 25 metres of water and was discovered in January 1979 with the drilling of the wildcat Matinloc-1 well, intersecting a carbonate reef build-up. The field is mapped as a four-way closure with a gross hydrocarbon column of more than 91 metres.
Matinloc-2 and Matinloc-3 were drilled directionally from the Matinloc-1 location in early 1980 and 1982, respectively. The Matinloc production platform was installed in June 1982 and production commenced in July of that same year with a peak production rate of 6,800 bopd. Cyclic production began on Matinloc in January 1997.
Since production start-up Matinloc has produced over 12 million barrels of oil with an average crude oil gravity of 43o API. The Matinloc crude is marketed to Philippine refineries together with the oil produced at the Nido oil fields.
Nido's strengths lie in the quality of its assets, the expertise of its people and their local knowledge of Philippine geology and the regulatory and business environment. In addition, the Company operates in an attractive fiscal regime and stable regulatory environment.
Nido's Joint Venture partners include oil major Shell Philippines Exploration BV and the Philippine National Oil Company Exploration Corp. (PNOC-EC).