Nido Petroleum Limited (Nido or the Company) announced Monday that it has executed the second stage of the Service Contract (SC) 63 farm-in process with PNOC-EC. The terms of the farm-in, which is located in for SC 63 in North West Palawan Basin in the Philippines, with PNOC-EC are consistent with the original agreement with Dragon Oil plc.
Nido will now retain a net 20 percent Participating Interest in SC 63 and in exchange for the divestment of the Company’s net 30 percent interest Nido will only be required to contribute $2.0 million towards the cost of the Baragatan-1 well (based on the $25 million dry hole cost cap).
In addition Nido has received a net payment of approximately $1.63 million for past seismic costs through this 2 stage farm-in process.
Subject to DOE approval, the participating interests in the Service Contract will be as follows:
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