nido news/nido offered blocks in u.k. 23rd round

Nido Petroleum Limited has been offered 5 new blocks in the UK North Sea as part of the UK Government 23rd Licencing Round. The bid was awarded on a promote basis providing 2 years for evaluation prior to drill or drop decisions.

The highlights of the award are as follows:
� 2 new blocks, 47/8d and 47/13c in the Southern North Sea (揝NS�) Gas Basin. The new blocks are contiguous and technically synergistic to our existing gas discovery Blocks 47/9c, 48/1b and 48/2c.
� Nido applied for both SNS blocks and will maintain a 50% equity interest with our JV partner Norwest Energy NL.
� The new SNS blocks are immediately along structure of the Amythyst Field (750BCF) operated by British Petroleum. The new blocks provide Nido with a critical mass of 5 exploration blocks in this strategic area.
� Nido has also been awarded 3 new blocks (refer to Figure 2) in the Northern North Sea (揘NS�), Inner Moray Firth, a highly competitive area. These new NNS blocks provide Nido with a new entry into the North Sea Oil Fairway.
� The NNS blocks were awarded to UK company Stelinmatvic Industries Ltd (揝telinmatvic�) with Nido as a JV partner. Stelinmatvic is headed by Mr Steve Bushell who has extensive North Sea experience.

Paul Quaife, Head of Exploration, stated that 搘ith the award of 5 blocks in the UK Government 23rd Licencing Round, we have achieved a strategic position in the Southern North Sea Gas Basin. The award of the 3 blocks in the Northern North Sea provides us with an entry to the highly regarded Northern North Sea oil fairway. We attribute this success to the recent strong growth of our Company which now provides us with a number of options to create value from our UK acreage position�.

Dave Whitby, Nido抯 Managing Director says 搕he UK gas industry is on a high: high demand for new gas and high commodity prices. Having worked for the last decade developing greenfield gas projects in Indonesia for ConocoPhillips, the UK opportunity was one we could not pass up�.

揑n February 2005, Nido contracted the energy consulting group, Wood Mackenzie, based in Edinburgh, to give a detailed analysis of the gas industry in the UK from a commercial and marketing perspective. Based on the results of this study Nido aggressively pursued blocks in Round 23. Nido views the gas market in the UK as follows:
� Gas reserves in the Southern Gas Basin are 83% depleted.
� Production is predicted to decline from 599 mmscfd in 2005 to 407 mmscfd by 2007.
� Pipeline infrastructure has 1,600 mmscfd of surplus throughput capacity
� Demand for gas in the UK is forecast to grow from 10,800 mmscfd to 13,000 mmscfd by 2015.
� Supply is forecast to drop from 9,400 mmscfd in 2005 to 3,800 mmscfd by 2015.
� Gas prices in the UK track closely to the US prices�.
揘ido is thrilled that its UK strategy is taking shape. Nido抯 acreage position has reached critical mass to give us a number of options to create value in the near and long-term�.

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