Nido Petroleum Limited has executed the second stage of the SC 63 farm-in process with PNOC-EC. The terms of the farm-in with PNOC-EC are consistent with the original agreement with Dragon Oil PLc.
Nido will now retain a net 20% Participating Interest in SC 63 and in exchange for the divestment of the Company’s net 30% interest Nido will only be required to contribute $US 2.0 million towards the cost of the Baragatan-1 well (based on the $US 25 million dry hole cost cap).
In addition Nido has received a net payment of approximately US$1.63M for past seismic costs through this 2 stage farm-in process.
Subject to DOE approval, the participating interests in the Service Contract will be as follows: Dragon Oil (Philippines SC 63) Limited 40%, PNOC-EC 40% and Nido Petroleum Philippines Pty Ltd 20%.
Press Release, May 19, 2014