Nido Runs into Mechanical Difficulties with Philippine 3D Survey

Nido Petroleum Limited has been advised by Veritas Geophysical, its 3D seismic contractor undertaking a 3D survey in Service Contract 54 (SC 54) in the the Palawan Basin, that the survey has ceased acquisition at this time following mechanical difficulties with the M/V Veritas Viking II vessel that occurred on November 11th. The Viking II is in the process of sailing to Singapore to undergo a detailed assessment by Veritas.

The SC 54 joint venture partners are currently in discussions with Veritas regarding alternative strategies and timing solutions for the resumption of acquisition leading to the successful completion of the survey.

Prior to this time, the 3D survey was making very good progress, having completed 36% of the survey ahead of budget, and was on schedule to be completed by the end of November 2006.

Nido is working closely with Veritas to complete the acquisition of the 3D survey as soon as possible.