Unocal Makes Offer to Farm-In To Galoc Field

Nido Petroleum and Alcorn Gold Resources have received an offer from Unocal to farm-in to the Galoc discovery located offshore Palawan, 16 miles north-northeast of West Linapacan.

Unocal has offered to pay 100% of the cost in three phases separated by exit points to earn 75% participating-interest in the block. Phase 1 is reprocessing of 3D seismic data that includes the payment of US $4 million licensing fees. Phase 2 is reservoir/production modeling. Phase 3 is full field development and production.

A production bonus of US $1.5 million will be paid to the Filipino group upon the start of production and another US $1.5 million when oil production has accumulated 35 million barrels of oil. The consortium partners await the final draft of the contract for signing.