Nido Petroleum Philippines Limited, on behalf of the SC 58 Joint Venture, provides an update on the final results of detailed geochemical analysis conducted on the liquid hydrocarbons detected in cores acquired during the multi-beam and deepwater sea-bed coring project in April this year.

Preliminary geochemical analysis based on Gas Chromatography (GC) detected evidence of liquid hydrocarbon micro-seepage in the majority of cores recovered from the central sector of SC 58. Initial biomarker 'fingerprinting' using Mass Spectrometry techniques (GC-MS) also confirmed the presence of liquid hydrocarbons which, importantly, showed similar thermal maturities and biomarker affinities with known NW Palawan source rocks and oils.

Nido has now completed the remaining geochemical analysis of the cores and is pleased to confirm the preliminary findings as follows: • independent geochemical review using a variety of techniques has confirmed the traces of liquid hydrocarbons detected in the cores have been derived from mature, oil and gas -prone source rocks; • the liquid hydrocarbons are of a similar composition to those which are interpreted to have generated the hydrocarbons discovered in the shallower waters of the NW Palawan continental margin; and • this geochemical and biomarker evidence supports the extension of the active shallow water source systems into deepwater SC58.

Jon Pattillo Nido's Head of Exploration commented, 'Geochemical confirmation of the composition and origin of the micro-seeped hydrocarbons detected in the cores significantly mitigates what Nido considers to be the key subsurface risk in deepwater SC 58 block - evidence of an active source system. In a similar way to the Malampaya graben being the likely source for the majority of oil and gas discoveries in-board of SC 58, including the giant Malampaya gas field, equivalent-aged grabens mapped in SC 58 can now be considered as viable source systems to charge the large Balyena, Butanding and Dorado prospects mapped in the block. This is a very exciting development. Not only are individual prospect probability of success (POS) improved, but it highlights the substantial upside in the SC 58 deepwater fairway'.

The forward exploration program in SC 58 will now focus on full integration of geochemical results with ongoing seismic reprocessing studies aimed at detailing the extent of the source rock systems within the block. This work will conclude in early 2011 following final risking/ranking of the prospect inventory and the selection of drilling candidates.

Nido is partnered in SC 58 with the Philippine National Oil Company. Nido has estimated that the structures in this permit have the potential to contain over 5.0 billion barrels of unrisked Oil in Place.

Nido is the dominant player in the Palawan Basin across all water depths from the shallow water areas that include its two producing oil fields at Galoc and Tindalo, mid-water depth which holds the Gindara drilling target, through to the deep water area of SC58 and SC 63 where a host of leads and prospects have been delineated.

Tags: Nido Petroleum Limited