Nido, Kairiki Spud Tindalo-1 in SC 54

Nido Petroleum Ltd.

Nido Petroleum Limited and its Joint Venture partner, Kairiki Energy Limited, have announced that the Tindalo-1 exploration well in Service Contract 54 (SC 54) commenced drilling on October 3, 2008.

Tindalo-1 is located five and a half kilometers northeast of the SC 54 Joint Venture's Yakal-1 discovery well which encountered a 78 to 93 meter gross oil column in the Nido Formation carbonate reservoir. Tindalo-1 well is targeting the same reservoir that was oil-bearing at Yakal-1 and is expected to take approximately three weeks to drill. If successful, Tindalo-1 will be capped and prepared for completion pending a future extended well test. After drilling Tindalo-1, the WilBoss jackup drill rig will be demobilized from SC 54 and released.

As of the date of the last report on the drilling program, the drilling rig was under tow to the Tindalo-1 location.

Since that report:

  • The rig arrived at Tindalo-1 location on Thursday, October 2, at 12:30 hours;
  • Tindalo-1 was spud at 21:00 hours on October 3;
  • The 30" conductor had been set at a depth of 202 mRT (metres below the rig rotary table); and
  • As of midnight last night, the well was drilling ahead in 17 1/2" hole at 390mRT.

Nido's Deputy Managing Director, Joanne Williams said, "As Nido's first operated exploration well Yakal-1 was highly successful; of course, first and foremost it was a discovery but in addition to this important event for the Joint Venture, the execution of drilling operations has been second to none. I’m told the Yakal-1 well sets an Asian water depth record for jackup drilling and it was completed with an excellent HSE performance, with no
incidents or accidents. This drilling performance is a huge credit to the drill team that we mobilized to Manila for the program."

Williams continued, "I am excited to follow up the discovery at Yakal-1 so soon. The positive results and the operational record so far in the program have certainly heightened our anticipation for Tindalo-1 and a second successful result here would provide a good foundation for a combined extended well testing program in the inboard of SC54."