recent ann sheds light on Galoc funding. good news imo and no surprise
Nido Petroleum Limited A.B.N. 65 086 630 373 Level 3, 41-43 Ord Street West Perth WA 6005 PO Box 1190, West Perth WA 6872 Tel: (08) 9321 2844 Fax: (08) 9321 2544 9 May 2005 Australian Stock Exchange Limited Company Announcements Office Level 10 Exchange Centre 20 Bond Street SYDNEY NSW 2000 GALOC DEVELOPMENT UPDATE Nido is pleased to announce that the SC-14 joint venture has granted a period of exclusivity to a farm-in consortium with a development proposal for the Galoc field in the SC-14 Service Contract area located in the offshore Palawan Basin of the Philippines. The farm-in consortium comprises of a major investment grade, European based, oil industry company, Cape Energy Pty Ltd (Cape) and Team Oil Limited (Team). The development proposal is similar to that which was proposed by Cape and Team and disclosed by Nido to the market on 24 September 2004. This farm-in proposal represents a strengthening of the original Cape and Team proposal via the inclusion of a firm underwriting commitment for the farm-in group's share of the development cost and various technical enhancements to the proposed development scenario. The exclusivity period extends to the end of May 2005 allowing the farm-in consortium time to establish, and equity fund, a joint operating company for the Galoc field development (Galoc Production Company). The farm-in is subject to final approval of the SC-14 joint venture partners and the Department of Energy in the Philippines. Under the terms of the farm-in proposal, Nido will retain its 22.279% direct interest in the Galoc project. Nido has been offered, by the farm-in consortium, a fully underwritten debt facility to cover Nido’s debt component of the development costs while Nido will be responsible for funding its equity share. Nido’s cash flow forecast presently indicates its ability to fund its equity through internal resources. The project will be developed under the guidance of a Steering Committee comprised of representatives from Galoc Production Company and Nido. I invite you to check our website at www.nido.com.au for further information on Galoc and past announcements. Yours faithfully DAVID WHITBY Managing Director
NDO Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
