Nido Petroluem is launching a US$24 million (A$31.9 million) offer to fund drilling of an appraisal well to the Galoc discovery, offshore the Philippines.
Nido is looking to raise the funds through an 11.2 for 1 pro‐rata renounceable entitlement offer of new shares at an offer price of $.049 (A$0.065) per new share.
The funds will be used for the drilling of Nido’s participating interest share of the drilling of the Galoc‐7 appraisal well and, if required, an associated side‐track (Galoc‐7/7ST) scheduled for Q1 2017.
Galoc‐7/7ST will appraise the currently untested Galoc Mid Area (GMA) in Nido’s core asset, Block C1 of Service Contract 14 (Galoc Field).
If Galoc‐7/7ST is successful, the subsequent development of the GMA is expected to materially increase reserves and production, substantially extending the life of the Galoc Field, Nido said.
Galoc Field is in Block C1 of service contract 14 (SC 14C1), 70km west of Culion Island in the northwest Palawan basin, offshore Philippines at 320m water depth. The reservoir depth is 2100–2200m with a 57+m gross oil column consisting of early Miocene turbidite sandstone with 16+% average reservoir porosity. The field produces a 35° API, 1.6% sulphur content crude that is marketed within the southeast and north Asian regions.
The field is operated on behalf of the SC 14C1 joint venture by Galoc Production Co. (GPC). The joint venture consists of Nido (55.88%); Kuwait Foreign Petroleum Exploration Co. (26.85%); Oriental Petroleum & Minerals Corp and Linapacan Oil Gas & Power Corp. (7.78%); Philodrill Corp. (7.22%), and Forum Energy (2.27%).
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