SC 54 is being evaluated by Nido and Joint Venture partner, Yilgarn Petroleum Philippines PTY Ltd, with the focus being placed on two areas within the permit.
The first area consists of the technically robust Coron North prospect, which shows potential for up to 450 million barrels of oil. The recent 3D seismic interpretation has confirmed Coron North as a strong drilling opportunity.
Further technical and commercial analysis will need to be completed before Coron North is mature for drilling; however Nido and Yilgarn are very excited by the potential size of the structure.
Nido's Head of Exploration, Jon Pattillo said, "Nido is pleased that the 3D seismic is starting to deliver tangible exploration results, in particular the Coron North prospect which is developing into an attractive drilling opportunity."
Also included in this first focus area is the Princesa lead; the 3D seismic data has confirmed the presence of the Pagasa turbidite play, including the large Princesa lead, in the western part of SC 54.
Nido is confident it will have a positive update on the Princesa lead once the additional 180km2 3D seismic program is completed in the third quarter of 2007.
In addition the high quality 3D seismic has also uncovered a number of new leads similar to the Coron North project and Princesa lead. This provides even greater upside potential within SC 54.
The second focus area is in the shallow waters of the eastern part of SC 54. Nido is especially interested in finding new opportunities here that can quickly be brought onto production to generate early cash flow.
Initial interpretation of this portion of the permit has identified 24 pinnacle reef structures in less than 120 meters of water. The reef trend is of particular importance because of its similarity to the producing Nido oil fields.
These pinnacle reef structures are possible candidates for rapid exploitation given the lower drilling and development costs afforded by shallow waters. Detailed technical and engineering work will be conducted over the next few months to determine the commerciality of these features.
Nido's Managing Director, David Whitby, said the results validate Nido's long-held belief in the prospectivity of the Palawan Basin as a whole.
"The opportunities currently being evaluated in SC 54 provide Nido with a significant prospect and lead portfolio from which to select a number of high quality candidates for drilling in the next sub-phase of the Service Contract."
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