Nido Updates on Reserves, Activities at Galoc Oil Field Off the Philippines

The Galoc Phase 1 wells Galoc-3ST1 and Galoc-4 continue to perform close to previous forecasts. As at July 31, Galoc-4 was producing at an oil rate of 2,560 stock tank barrels per day or stbd (approximately 32 percent of field rate); cumulative production from the well was 10.3 million barrels (MMstb).

The Galoc Phase II wells Galoc-5 and Galoc-6 have made a significant contribution to the field production since the successful commissioning of Galoc Phase II in December 2013. As at July 31, they were producing at a combined oil rate of 4,680 stbd (approximately 58 percent of field rate); cumulative production from the two wells was 1.3 MMstb.

The reserves position for the Galoc Oil Field as at 31 July 2014 is as follows:

  • Reserves Category (Developed Producing)
    • Proved Developed (1P): Gross (100 percent) Field Volumes (Crude Oil) - 9.2 MMstb; Reserves Net to Nido's Entitlement Interest (Crude Oil) - 1.8 MMstb
    • Proved plus Probable Developed (2P): Gross (100 percent) Field Volumes (Crude Oil) - 11.9 MMstb; Reserves Net to Nido's Entitlement Interest (Crude Oil) - 2.3 MMstb
    • Proved plus Probable plus Possible Developed (3P): Gross (100 percent) Field Volumes (Crude Oil) - 15.6 MMstb; Reserves Net to Nido's Entitlement Interest (Crude Oil) - 3.1 MMstb

Notes:

1. Net Entitlement Reserves are Nido’s net economic entitlement under the Service Contract that governs the
asset, i.e. Company’s share of cost oil and profit oil
2. No account has been taken of any losses for fuel or shrinkage
3. The reference point for the purpose of measuring and assessing the estimated oil reserves is at the metering
point on the FPSO
4. No oil produced from the Galoc field is used as fuel

Nido’s Galoc Reserves have been assessed on a net entitlement basis through an Economic Limit Test which incorporates the applicable SC 14C1 fiscal terms.

Table 2 compares GCA’s Independent Reserves assessment for the Galoc oil field at July 31 with the Reserves position at Dec. 31, 2013, on a gross (100 percent) field basis.


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