Australian firm invests in PNOC Palawan project

By Abigail L. HoInquirerLast updated 03:16am (Mla time) 07/24/2006Published on page B4 of the July 24, 2006 issue of the Philippine Daily Inquirer NIDO PETROLEUM LTD., an exploration company listed on the Australian Stock Exchange, has entered into a farm-in agreement with Philippine National Oil Co. for the development of an oil prospect off Palawan.Under the agreement, Nido will shoulder the entire $8.5-million pre-drill cost, which will cover the acquisition and interpretation of seismic data gathered under Service Contract 58 up to January 2008.The drilling of an exploration well is scheduled between January 2008 and February 2010.Nido will get half of SC 58's earnings in exchange for undertaking the agreed work program.To date, two prospects and six leads have been identified within the contract area."The success of this farm-in and the commencement of seismic operation is a significant benchmark for our company and represents a 'coming of age' for the business following our growth and development over the past two years. Nido is now operational," Nido chief operating officer Craig Martin said in a disclosure to the ASX.SC 58 is adjacent to the Malampaya gas find.SC 58 is also one of the largest contract areas in the Palawan Basin at 1.344 million hectares.Nido's participation in SC 58 will boost its gross acreage in the Palawan Basin by 203 percent from 661,997 hectares to 2 million hectares.