pnoc website..commence seismic survey , page-4

2d seismic survey and galoc budget approval hi guys

good news Galoc moving another step closer to production..

expect another announcement

18 September 2006
Australian Stock Exchange Limited
Company Announcements Office
Level 10 Exchange Centre
20 Bond Street
Sydney NSW 2000
Galoc Oil Field Development Work Proposal and Budget Approved by Joint Venture Partners
Nido Petroleum Limited (“Nido”) is pleased to announce that Nido, and its Joint Venture partners,
have approved the Work Program and Budget to first oil for the Galoc Oil Field development.
This first development phase for Galoc will entail an investment of US$86 million (including a 12.5%
contingency) on behalf of the Joint Venture, of which Nido’s 22.279% share will be US$19.2 million.
Development drilling is expected to commence in June 2007 with first oil production scheduled for
November 2007.
Deputy Managing Director, Joanne Williams, commented “The Galoc team is to be congratulated on
achieving this milestone 12 months since the Operator, Galoc Production Company (“GPC”),
assembled a project team following the farmin in August 2005, with first oil anticipated just over a
year from now.”
The Galoc Field is situated in Block C of Service Contract 14 (“SC 14”), in the North West Palawan
Basin, offshore Philippines. The Galoc Field is located approximately 55 km north-east of Shell’s
Malampaya Gas Field in a water depth of approximately 290 metres. Nido holds a 22.279% working
interest in the field which is operated by GPC. Two exploration and appraisal wells were drilled in
the Galoc Field during the 1980s and produced over 385,000 barrels of oil during an extended
production test in 1988.
In April 2006, Nido commissioned Gaffney, Cline and Associates (“GCA”) to undertake an
independent reserves certification of the Galoc field to international standards. The reserves have
been certified for the first phase of the Galoc development which will comprise two subsea horizontal
wells connected via a seabed flowline and riser system to a Floating, Production, Storage and
Offloading Facility (“FPSO”).
GCA Certified Reserves Proved Proved+
Probable
Oil Originally In-Place MMstb 78.4 122.2
Economic Recovery Factor 12.4% 19.2%
Gross 100% MMstb 9.7 23.5
Nido Net Participating Interest MMstb 2.2 5.2
Nido Net Entitlement* MMstb 2.0 4.4
* Nido Net Entitlement is net of Government share of profit oil.

Nido expects that the horizontal wells will be highly productive, with each having an initial
production capability of up to 15,000 bopd. In order to maximise oil recovery, total field production
rate will likely be restricted to an initial rate of approximately 17,500 bopd.
Field data gathered during drilling and the initial production will represent an important appraisal
activity which will lead to a better understanding of the field and any additional reserves potential.
The development design has the flexibility to tieback additional wells to the FPSO in the event of a
substantial increase in estimated recoverable volumes.
Chief Financial Officer, Gillian Evans, said “Following the announcement on 10 August 2006 of the
US$22 million convertible note with Merrill Lynch, Nido is financed for the Galoc development. In
addition, the Company will seek project level debt secured by Galoc reserves to maximise return on
equity with appropriate and responsible levels of debt.”
Please see attached information sheet.
For further information, contact:
David Whitby
Tel +61 8 9321 2844