Nido Completes Galoc Drilling, Starts Completion Program

Nido Petroleum Ltd. successfully concluded the drilling phase of the Galoc development.

Phase 1 of the Galoc development drilling program was designed to drill two horizontal production wells located to access the maximum producible oil volumes from the southern half of the field. This program commenced on Oct. 7, 2007, with the spudding of Galoc 3.

The drilling program included a pilot hole to establish the optimum drilling location for the horizontal production sections. Following the results from the pilot hole, the location of the Galoc 3 horizontal section was moved slightly further north to improve access to oil in place and drainage area.

A total of 11,346 meters was drilled during this drilling program, which was successfully concluded Jan. 7, 2008, when the 5.5-inch predrilled liner was run on the Galoc 3 horizontal production section.

Of the 11,346 meters drilled, a total of some 2,900 meters of horizontal production section is now in place across the reservoir (at a depth of approximately 2,190 meters below sea level). The wells each cover more than 40% of the field width.

Nido reveals that the reservoir quality has been interpreted as better than originally expected.

The drillship Energy Searcher will remain on location for a further three weeks to execute the completion program. This involves installation of the completions, the subsea trees and control systems. Once this work is finalized, oil will be flowed to surface to clean out the drilling fluids in preparation for the commencement of production following installation of Galoc's FPSO, Rubicon Intrepid.

At the end of the completion program, the rig will then demobilize to Singapore and installation of the mooring and riser system will commence.

"The total production section that has been achieved is the equivalent of over two and half times the total length of the Sydney Harbour Bridge," Nido's Deputy Managing Director, Joanne Williams said. "Looking forward, the next milestone in the development will be the well testing planned later this month. I look forward to flowing these wells for the first time, and the start of production once the subsea infrastructure and the FPSO have been installed and commissioned."
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