status report out!! - n/c, page-2

**here is the announcement** Nido Petroleum Limited
hi guys

here is the announcement

Dear Sir
Status of Key Activities
Nido Petroleum Limited (Nido) would like to inform the market and its
shareholders regarding the up to date status of three key activities that have
been subject to considerable press speculation over the last few days.
I - Galoc Approval
As of today, five of the six Filipino partners in the Galoc Production Area of
Service Contract 14 have approved the Galoc farm-in agreement. Oriental
Petroleum and Minerals Corp (Oriental) with a 30.29% working interest in the
Galoc structure has yet to sign the farm-in agreement pending receipt and
verification of original signed and executed supporting documents. This unique
request has been addressed with the appropriate documents being couriered to
Manila this week.
On May 9th 2005, Nido informed the market that the Galoc farm-in consortium
parties were Cape Energy Pty Ltd, Team Oil Limited and a third party referred to
as “a major investment grade, European based, oil industry company”. This third
company is Vitol Holding. Vitol is a privately owned company with headquarters in
Rotterdam and Geneva, and a network of offices in other key business centres around
the world. Vitol describes itself as follows:
“The Vitol Group is made up of separate affiliated companies
engaged in a variety of commodity and financial business. Since
its foundation in Rotterdam in the 1960s, it has grown and is widely
acknowledged by the oil industry as one of the largest and most
influential independents in the oil markets, with global presence.”
Vitol elaborate upon their corporate activities on their website www.vitol.com.

Nido will not farm down its interest in the Galoc oil field thus retaining its 22.279%
interest in the field. Investors can expect a more detailed release of information
once Oriental has signed the farm-in agreement.
“While five of the six Filipino partners were satisfied with notarized copies of the
supporting documentation to the Galoc farm-in agreement, Oriental is well within
their rights to ask to review the original signed documents as part of their final
due diligence and this request was addressed last week. Having worked the
majority of my professional life in SE Asia, Oriental’s request to review the
original documents is standard business practice in the larger business
conglomerates” said Nido’s Managing Director, David Whitby.
II – Award of Philippines Exploration Permit to Nido
It has been reported in the Manila press that Nido will be awarded a material
exploration permit with the contracts to be “inked” in the next few weeks. Nido
can confirm that it has applied for a large exploration permit contiguous with its
existing offshore acreage position in the Philippines Palawan Basin however no
formal notification has been received from the Department of Energy in Manila
indicating that Nido has been successful in their bid.
Please refer to the attached map for the location and key points pertaining to the
area under application. Nido will inform the market upon receiving confirmation
by the Philippines DOE pertaining to the award of this block.
III - Exercising of June 2005 Options
Nido is pleased to report that there was an overwhelming response by
shareholders and investors in exercising the June 2005 options. Since the AGM
on 27 May 2005 and as of 7 July 2005 a total of 156.1 million options were
converted to shares which represents 99.6% take up rate and generating $3.286
million for Nido’s operations. The top 20 shareholders list will be made available
to the market next week.
“We are pleased to have been able to create material value for our shareholders
and option holders and were truly amazed at the high rate of take which, to us at
Nido, is a tremendous vote of confidence for the team, the asset depth and the
strategic focus of the company”.
Yours faithfully,
David Whitby
Managing Director