Nido to Run Casing at Gindara Well

Nido, on behalf of the SC 54B Joint Venture, provided an interim update on the progress of the Gindara-1 well.

On June 7, 2011, the Gindara-1 well was preparing to run the 9 5/8" casing at the revised depth of 3,345 meters MD (3,323 meters TVDss) in the lower section of the Pagasa Formation just above the Nido Limestone primary reservoir objective. Progress since the last update has been 1,680 meters.

Whilst drilling the Pagasa Formation, the secondary Coron Clastics reservoir interval was encountered between 2,907 meters MD (2,885 meters TVDss) and 3,267.5 meters MD (3,245.5 meters TVDss), a gross thickness of 360.5 meters. This was approximately 33 meters deep to prognosis. Based on LWD logs (Logging While Drilling) the section is interpreted to be water-wet. Minor mudlog gas readings (C1 up to C4) were recorded throughout the secondary reservoir section.

The forward operation is to run and cement the 9 5/8" casing and then drill ahead into the primary Nido Limestone reservoir in the 8 ½" hole section, down to the planned Total Depth of 3,672 meters MD (3,650 meters TVDss). Running and setting the 9 5/8" casing is anticipated to take up to five days to complete.

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