Nido Reaches TD at Gindara Well

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

Since the last update, the Gindara-1 well has been drilled from 3,530 meters MD (3,508 meters TVDss) to the revised Total Depth (TD) of 3,660 meters MD (3,638 meters TVDss) in the primary Nido Limestone reservoir section. Current operations are pulling out of the hole to run wire-line logs.

While drilling the Nido Limestone at 3,560 meters MD (3,538 meters TVDss) the well intersected the predicted good quality reservoir section in the Nido Limestone which extended down to the revised TD of the well at 3,660 meters MD (3,638 meters TVDss).

Although indications are that the good quality limestone reservoir section is water bearing, it has not been possible to definitively determine if the fluids in the reservoir are hydrocarbons or water due to the combination of a potential deep invasion of the reservoir by the drilling mud and technical problems with the Logging Whilst Drilling (LWD) logging equipment. Therefore, a comprehensive wire-line logging program is being run to confirm the fluid type within the good quality Nido Limestone reservoir section.

Jon Pattillo, Nido's Head of Exploration commented, "We have encountered the high quality limestone reservoir section that was predicted pre-drill. Although indications are that the good quality limestone reservoir is water bearing, it is possible that the drilling fluid has invaded the limestone reservoir due to its good porosity. We have not been able to definitively determine if this is the case due to technical problems with the LWD logging tool and so we are running a comprehensive logging program to confirm the fluid type within the reservoir. This program will take a few days to complete and Nido will provide a further update on the results when they become available."

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