PERTH, Western Australia – Nido Petroleum Ltd. (ASX: NDO) has executed the second stage of the SC 63 farm-in process with PNOC-EC. The terms of the farm-in with PNOC-EC are consistent with the original agreement with Dragon Oil PLc.
Nido will now retain a net 20% participating interest in SC 63, and, in exchange for the divestment of the company’s net 30% interest, Nido will only be required to contribute $2 million toward the cost of the Baragatan-1 well (based on the $25 million dry hole cost cap).
In addition, Nido has received a net payment of $1.63 million for past seismic costs through this two-stage farm-in process.
The participating interests in the service contract will be Dragon Oil (Philippines SC 63) Ltd., 40%; PNOC-EC,40%; Nido Petroleum Philippines Pty. Ltd., 20%.