Nido Begins Palawan Seismic Survey

Nido Petroleum's next major seismic acquisition campaign is scheduled to commence on September 30, 2007 across the NW Palawan exploration portfolio.

The program will be the largest ever undertaken in the history of the company with a combined total in excess of 5,000 line km of 2D and 846 sq km of 3D seismic data, and follows on from the Abukay 3D in Service Contract (‘SC’) 54 and Talusi 2D in SC 58, both completed at the end of 2006.

The combined program will involve two seismic vessels the MV ‘Pacific Titan’ and MV ‘Pacific Sword’, both contracted from CGGVeritas for the 100-120 day operation.

The program will focus on delivering the following objectives:

-- SC 58: Nido and Joint Venture partner PNOC-Exploration Corporation (‘PNOCEC’) will acquire 661 sq km of 3D seismic over four areas aimed at delivering a portfolio of fully de-risked and mature drilling candidates by the second quarter 2008. In addition to the 3D seismic program, Nido plans to also acquire approximately 1,600km of 2D seismic within SC 58 with the objective of developing additional potential recognized in the block by the Talusi subsurface interpretation.

-- SC 54: Following the preliminary interpretation of the Abukay 3D seismic Nido and Joint Venture partner Kairiki Energy Limited (formerly Yilgarn Gold Limited) will extend the 640 sq km Abukay 3D seismic survey westward by a further 165 sq km to ensure full coverage of the Princesa Lead and Late Miocene ‘Pagasa’ Turbidite play fairway in this sector of SC 54. Furthermore, Nido and Kairiki plan to capitalize on the presence of the seismic vessel and acquire approximately 454 km of new 2D seismic over the less explored southern sector of SC 54 in conjunction with the adjacent SC 58 2D seismic program. The MV ‘Pacific Titan’ will acquire the SC 54 and SC 58 2D and 3D programs.

-- SC 63: Nido and Joint Venture partner PNOC-EC will acquire 3,165 line km of 2D seismic data, which will provide an excellent regional platform to high-grade areas for further 2D and or 3D seismic in 2008. The survey will also include a closely spaced 2D grid around the Aboabo-1 well drilled in 1980 by Phillips Petroleum, which is reported to have flowed gas at rates in the order of 50MMscfg/d.

The data will be acquired as part of a group-shoot organized by SC 63 Operator PNOC-EC using the MV ‘Pacific Sword’. Nido’s Head of Exploration Jon Pattillo said, apart from being the company’s largest ever and, at 120 days, the longest operated program, the size of the program reflected the potential identified in Nido’s Palawan exploration portfolio by the 2006 seismic campaign.

"The 2007 seismic program is multi-faceted, with SC 54 and SC 58 focused on delivering a drilling portfolio through 3D acquisition over five high-graded areas. In SC 63 the objective is to accelerate the 2D seismic program in order to bring this large block to a level of maturity similar to SC 54 and SC 58 as quickly as possible. On completion of our 2007 program and within the space of approximately 12 months, Nido will have covered the majority of its exploration acreage with an extensive grid of high quality 3D and 2D seismic data on which to build the companies Prospect and Lead portfolio" Mr. Pattillo said.

Nido anticipates the SC 54 3D seismic survey will commence on 28 September 2007 and run for 20 days, subject to weather conditions. The SC 58 2D and 3D program will therefore commence in late October with operations extending into January 2008. The SC 63 survey is anticipated to commence in mid October and extend through to December 2007.