Nido Petroleum Limited (Nido or the Company) provided Wednesday the following update regarding the Galoc oil field in Service Contract (SC) 14 C1, Republic of the Philippines:
Production performance from Galoc field has remained strong since start-up of Phase II in December 2013. The field has produced in excess of 2 million barrels (gross) in the first 8 months of Phase II production to end July. Production between Jan. 1 and July 31 has been 1.8 million barrels (gross). Nido expects a total of 10 cargoes will be delivered from the field during 2014, with 7 cargoes already sold this year going to local South East Asian refineries.
Further Expansion Studies
During the year, Galoc field Operator Otto Energy has progressed technical studies which have provided a greater understanding of the Galoc main field area (currently being developed with 4 wells) and the exploration potential recognized in the Galoc Mid and Galoc North Areas.
Although no firm proposals are under consideration by the SC 14 C1 Joint Venture at this time, the Operator considers that the results of the current technical studies may lead to further activities to unlock the upside potential of the Galoc Mid Area and/or to undertake additional drilling and infill activities to complement existing productions at the Central Field Area.
GCA Reserves Update
GCA has completed an Independent Reserves Update of the Galoc field as at July 31 in accordance with the SPE/WPC/AAPG/SPEE Petroleum Resource System (SPE PRMS) Definitions and Guidelines and the ASX Listing Rules including recently implemented Listing Rules 5.25 to 5.44 where applicable.
The updated assessment was prepared using deterministic methods and is based on an updated decline analysis of field production history to July 31 from the Phase 1 and Phase II development wells.
Production performance since the year-end 2013 Reserves assessment has been on trend with Gaffney, Cline and Associates 1P forecast as at Dec. 31, 2013. The 2P and 3P estimated ultimate recoveries at July 31 are approximately 2 percent and 4 percent lower than the previous estimates, respectively. These differences, after accounting for recent production, are within acceptable uncertainty limits for reserves estimation and are not considered a material change.
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