sandy, page-16

From today's Petroleum News -

Joint venture partners Nido Petroleum and Kairiki Energy are expected to resume drilling operations in Service Contract 54, offshore the Northwest Palawan Basin in the Philippines, next month.

According to Nido, the drilling of two firm wells has been moved forward to early September, once the WilBoss drilling rig arrives.

The rig is expected to take about two months to drill Yakal-1 and Tindalo-1, which together have potential oil in-place of up to 18 million barrels, Nido said.

Managing director Joanne Williams said the two wells have a high chance of success as they are on the same structural tend as the Nido A and B producing fields, as well as the Nido-1 and 1X1 wells, which both flowed oil to surface when tested in the 1970s.

Williams also said there is substantial tie-back potential once production facilities are established and more than 20 other prospects to be drilled.

Nido announced plans to expand its drilling program with joint venture partner Kairiki Energy from one to three wells in SC54 earlier this year.

Following the drilling in SC54, the companies plan to drill the Gindara Prospect in 2009.