SC 54 contract area partitioned

The Philippine Department of Energy has approved the request of Service Contract 54 (SC 54) joint venture partners to partition the contract into two areas – “A” and “B”.

Offshore staff

SYDNEY, Australia -- The Philippine Department of Energy has approved the request of Service Contract 54 (SC 54) joint venture partners to partition the contract into two areas – “A” and “B”.

SC 54 is in the Palawan basin in the Philippines. Area ‘A’, the inboard, shallow water area, holds four discoveries including Tindalo and Yakal, which were made during Nido Petroleum’s 2008 drilling campaign. The area also contains the associated portfolio of shallow water discoveries and targets.

SC 54 Area ‘B’ covers the deeper water area of the block that contains the large Gindara prospect along with several other attractive exploration targets.

Operator Nido now has a 60% interest; partner Yilgarn Petroleum Philippines has the remaining 40% interest.

“The partitioning of SC 54 will allow the joint venture partners to pursue the Tindalo project (and mature the rest of the inboard area) more efficiently whilst maintaining our exploration efforts in the outboard in parallel where we are hunting larger targets such as the Gindara prospect in SC 54B,” says Joanne Williams, deputy MD of Nido.

07/28/2009

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