Offshore staff

(West Perth, Australia) -- A farm-in agreement has been reached between Nido Petroleum Ltd. and the Philippine National Oil Co. whereby Nido will earn 50% interest in SC 58 offshore Palawan basin.

SC 58 covers 1.34 million ha and is contiguous with Nido's SC 54 and adjacent to the Malampaya gas field.

Nido will under take a $8.5-million seismic acquisition and interpretation plan to January 2008.

The exploration begins immediately with a 3,500 km, 2D group shoot over both SC 58 and SC 54. PNOC has been taking the lead in this group shoot and Nido has secured the MVVeritas Voyager for later this month. The 2D programme will be followed by a 3D survey later this year in SC 54 and a subsequent 3D seismic program in SC 58. Nido will operate both seismic acquisition program.

7/18/06