Aussie firm expands RP drilling program
By Abigail L. Ho
Philippine Daily Inquirer
First Posted 19:33:00 05/04/2008
MANILA, Philippines--Australian firm Nido Petroleum Ltd. plans to drill at least two more shallow-water wells within its Service Contract 54 off northwest Palawan by the end of the year.
Nido deputy managing director Joanne Williams said the company and joint-venture partner Kariki Energy Ltd. have approved the additional budget for the drilling of these wells.
Based on historical trends, she said the majority of previous drillings in the Palawan Basin were focused on the Nido pinnacle reef play, which demonstrated a more than 50-percent success rate, based on 2D seismic data.
SC 54's shallow-water area, she said, had more than 20 of these pinnacle reef discoveries and prospects, with potential oil in place ranging from 2 to 20 million barrels each.
With modern 3D seismic data at the company's disposal, she said drilling of the shallow-water wells was considered "very low risk."
"Current record oil prices provide the perfect environment for the evaluation of this area. While each individual drilling target is of moderate size, the sheer number of targets together with their very low risk represents a material opportunity for near-term cash flow potential, should the evaluation prove successful at yearend. We intend to kick off the evaluation of the shallow water area with the drilling of at least two wells," she said.
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