value optimization status report - nido/matinloc p

For those interested, 'VALUE OPTIMIZATION STATUS REPORT - NIDO/MATINLOC PRODUCTION' as below ...

100 day status report to be released within two weeks ...




I hold NDO/NDO.

Warm regards!

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ASX ANNOUNCEMENT
December 2, 2004
VALUE OPTIMIZATION STATUS REPORT - NIDO/MATINLOC PRODUCTION
Nido Petroleum Limited is pleased to report on our initial success in optimizing production from the
Nido (22.486%) and Matinloc (28.283%) oil fields in the Philippines.
The Nido technical team has worked closely with the operator to develop a new operating philosophy
in order to take advantage of the high oil price environment.
The optimization initiative can be summarized in four steps:
Step 1: Improve the logistics and timing of the present lifting schedule
Step 2: Develop the Inflow Performance Relationship (IPR) for Nido B and Matinloc
by sequentially opening the wellhead chokes and monitoring the inflow
capacity of the wells to ascertain the optimum cycle time for each well and
developing a coordinated lifting schedule match with the well IPR
Step 3: Install artificial lift on selected wells
Step 4: Re-map the existing Nido & Matinloc structures to ascertain areas of untapped
potential.
During the first half of 2004, the operator reported 3 liftings totalling 32,714 barrels (gross JV). The
Nido technical team, working with the operator, have succeeded in making 7 liftings for a total of
90,099 barrels (gross JV) for the period July to November. For the year to date, the total oil volume
lifted from the Nido/Matinloc fields is 122,813 barrels of which Nido’s share is 27,204 barrels. The
financial impact of this increase in production will be reported in December quarterly report.
“We are pleased at the results of the first step of the optimization plan, the support of the JV partners
and the strong desire of all parties to continue to increase the lifting rates. We are developing
important relationships in the Philippines to give us the in-country experience to have a positive
impact on the profitability of the existing and future production”
Shareholders can expect the 100-day status report within two weeks regarding the progress made in
other areas of the Company.
For further information on the Company’s activities, please visit www.nido.com.au or contact Dave
Whitby at 9321-2844 or via email at [email protected].
Respectfully Submitted
Dave Whitby
Managing Director
Nido Petroleum Limited
A.C.N. 086 630 373
Level 3, 41-43 Ord Street,
West Perth, 6005, WA, Australia
PO Box 1100, West Perth, 6872, WA, Australia
Tel: 618 9321 2844
Fax: 618 9321 2544
E-mail: [email protected]
Internet: http://www.nido.com.au