Nido, Kairiki Encounter Oil Shows at Tindalo-1 Offshore Palawan

Nido Petroleum Ltd.

Nido Petroleum and its Joint Venture partner Kairiki Energy have provided this progress report on the Tindalo-1 exploration well located in Service Contract 54 (SC54), located in the NW Palawan Basin, offshore the Philippines.

While drilling through the Nido Formation reservoir section, oil shows were observed, (demonstrated by elevated mud log wet gas readings and strong oil fluorescence in cuttings recovered to surface) down to a significant lost circulation zone encountered between 1,782 and 1784.5 mRT (meters below the rotary table). Drilling continued past this zone to a total well depth of 1,875 mRT.

A small volume of oil recovered at surface confirms the presence of a movable oil accumulation at Tindalo-1 and the planned wireline logging program over the reservoir interval commenced this morning in order to determine the extent of the oil column.

Progress Update

As of the date of the last report, Tindalo-1 had drilled into the top of the Nido Formation reservoir at 1,635 mRT. Activities completed since that report include:

  • 14 October 9 5/8” casing was run and cemented in the 12 1/4” hole;
  • 16 October 8 1/2” hole section was drilled through to total depth of 1,875 mRT in the Nido Formation primary reservoir target; and
  • 20 October Electric wireline logging commenced in the reservoir section.

The forward well program for Tindalo-1 calls for the following next steps:

  • Complete wireline logging runs to fully evaluate the Nido Formation;
  • If the wireline logs demonstrate potentially commercial hydrocarbon volumes, the well will be capped and prepared for completion as a production well for extended well testing at a later date;
  • If the wireline logs demonstrate there are non-commercial volumes of hydrocarbons or that the well is dry, the well will be plugged and abandoned (P&A); and
  • Rig down and demobilize the rig from SC54.