Proactiveinvestors Australia

Nido Petroleum www.nido.com.au/

Nido Petroleum (ASX:NDO) holds a suite of assets in the North West Palawan Basin, Philippines, including a 22.28% working interest in the Galoc oil field.

Tweet

 

Email

Email to a friend:

To:

Separate multiple addresses with commas.

From Email address:

Name: Please send me a copy Message:

Verification code

Enter the code from aboveRequired

Send

Nido Petroleum secures A$28.8M funding for Galoc oil field expansion

Nido Petroleum (ASX: NDO) has secured a US$30 million (A$28.8 million) debt facility to help fund its share of costs for the expected expansion of the Galoc oil field offshore North West Palawan Basin, Philippines.

The company has a 22.897% working interest in the Galoc oil field, which is on schedule for a Final Investment Decision on its Phase II development to be made in the current quarter.

Galoc Phase II will allow the Galoc joint venture to convert best estimate (2C) Contingent Resources of 4.5 million barrels of oil equivalent into reserves, extending the field’s life to 2018. First oil is expected in the second half of 2013.

Front-End Engineering and Design work, which started in the third quarter of 2011, is currently underway.

This covers detailed subsurface modelling of the reservoir, drilling and completion design, subsea engineering and tie-back design for new wells as well as joint venture project financing.

Operator Otto Energy (ASX: OEL) is using data from the 184 square kilometres of 3D seismic shot over the field in late 2011 to place the two Phase II development wells and de-risk the project prior to FID.

This data will also allow full evaluation of the Galoc North exploration prospect, which may result in further development opportunities for the Galoc field.

Otto holds a 33% operating stake in the project while Nido Petroleum (ASX: NDO) holds 22.879%.

Debt facility

Nido’s debt facility is a reserve-based lending facility with a LIBOR plus premium interest rate and will be available in two tranches.

The first tranche of up to US$15 million will be available before an FID is made on the Galoc Phase II development while the

Nido Petroleum (ASX: NDO) has secured a US$30 million (A$28.8 million) debt facility to help fund its share of costs for the expected expansion of the Galoc oil field offshore North West Palawan Basin, Philippines.

The company has a 22.897% working interest in the Galoc oil field, which is on schedule for a Final Investment Decision on its Phase II development to be made in the current quarter.

Galoc Phase II will allow the Galoc joint venture to convert best estimate (2C) Contingent Resources of 4.5 million barrels of oil equivalent into reserves, extending the field’s life to 2018. First oil is expected in the second half of 2013.

Front-End Engineering and Design work, which started in the third quarter of 2011, is currently underway.

This covers detailed subsurface modelling of the reservoir, drilling and completion design, subsea engineering and tie-back design for new wells as well as joint venture project financing.

Operator Otto Energy (ASX: OEL) is using data from the 184 square kilometres of 3D seismic shot over the field in late 2011 to place the two Phase II development wells and de-risk the project prior to FID.

This data will also allow full evaluation of the Galoc North exploration prospect, which may result in further development opportunities for the Galoc field.

Otto holds a 33% operating stake in the project while Nido Petroleum (ASX: NDO) holds 22.879%.

Debt facility

Nido’s debt facility is a reserve-based lending facility with a LIBOR plus premium interest rate and will be available in two tranches.

The first tranche of up to US$15 million will be available before an FID is made on the Galoc Phase II development while the second half will be made available after the expansion is approved.

Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

Sign up to Proactive Investors

Comments from Proactive Investors readers

• Fill in your details below:

Verification Code

Reload image