Veritas Wins Seismic Contract from Nido Petroleum

Nido Petroleum, in conjunction with its partner, Yilgarn Petroleum Philippines Pty Ltd, has awarded a significant 3D seismic survey over Service Contract 54 (SC54) to Viking Maritime, Inc. care of Veritas Geophysical (Asia Pacific) Pte Ltd (Veritas). Nido, as Operator through its Philippine-based subsidiary, signed a Letter of Intent (LOI) with Veritas for the use of its M/V Veritas Viking II 3D vessel to commence a 653km2 3D seismic acquisition in October 2006. Nido will now seek necessary government approvals and enter into formal contractual arrangements with Veritas.

The survey will be acquired using the latest solid streamer technology and state of the art acquisition and processing techniques.

The 653km2 3D survey provides coverage of three potential targets:

  • the Coron North Prospect
  • an untested 120m, oil column at Coron-1
  • a very large Miocene Pagasa turbidite lead.

This 3D survey represents the first 3D acquisition in the Palawan Basin in approximately 4 years since the PGS Malampaya survey.

Nido is also intending to acquire regional 2D seismic data in SC54 as part of a group shoot led by PNOC Exploration Corporation. The Palawan 2D group shoot will deploy Veritas' M/V Veritas Voyager, which is expected to be operating in the Philippines from July 2006.

Mr. Paul Quaife, Head of Exploration, said "The SC54 3D survey is Nido's first opportunity to investigate the deep water turbidite potential in this basin. We are delighted to partnering in this significant 3D survey with Veritas, who has had recent success in imaging similar turbidite plays from West Africa and is making available to us one of its flagship 3D vessels".

Earlier this year, Nido recognized the significant advantages to be gained by further enhancing its existing seismic database with a modern 2D and 3D regional acquisition employing the latest technology. With the support of the Philippine Department of Energy, Nido recently secured an amendment to SC54 to allow these surveys to take place in 2006, thereby ensuring even greater success in its exploratory drilling. By securing the 3D survey and pursuing an additional 2D survey, Nido will maintain its strong position in the Service Contract.

Mr. Craig Martin, Chief Operating Officer, commented "The 3D seismic survey and the 2D survey will be Nido's first field operations in the Philippines since the new management team commenced. The Manila and Perth offices are working together to ensure a successful and safe operation. We are also proud to be playing a role in the resurgence of exploration activity in the Philippines this year".