Nido Petroleum targets Galoc oil production by middle of 2007
By Paul Anthony A. Isla
Reporter

AUSTRALIA-based Nido Petroleum Ltd. expects to generate significant free cash from the first oil production of the Galoc Field in Northwest Palawan by the second half of next year.
       In a presentation posted at its website, Nido said the development of the Galoc oil field may generate around $40 million to $70 million a year. The company recently unveiled its exploration portfolio and strategy in the Philippines in a conference on Southern Cross Equities in Sydney, Australia.
       Based on reservoir simulations, Nido said the Galoc oil field is estimated to have a well capacity of 15,000 barrels of oil a day, totaling a field capacity of 30,000 barrels of oil for the two wells.
       Nido added that with a controlled production oil recovery could be maximized to 17,500 barrels a day or 6.4 barrels of oil by the first year of production.
       Nido said it believes that the Galoc oil field most likely has 44.2 million barrels of oil
       With oil priced at $46 a barrel or $66 a barrel, Nido expects its first year pre-tax cashflow from the Galoc to reach $43.9 million at 2 million barrels of oil or P70.4 million at 1.2 million barrels, respectively.
       Nido Explorations chief Paul Quaife said his company has been quietly building its exploration position in the Philippines over the last 18 months, and that they see Northwest Palawan as having the potential to be the next Mauritania or Campos Basin in Brazil.
       Nido holds 22.279-percent working interest at the Galoc oil field along with other oil and gas exploration companies Galoc Petroleum Corp., a subsidiary of Vitol Corp., Cape Energy Pty. Ltd. of Australia and Team Oil Ltd. of UK and local partners Philodrill, Oriental Petroleum, Alcorn Phils.; Alcorn Gold Resources; Linapacan Oil, Gas and Power; Altisima Energy; Basic Petroleum and Minerals; Petroenergy Resources; Phoenix Energy.
       Late last year, the Department of Energy (DOE) talked with the Galoc consortium to determine its plans for the said block in a bid to lessen the country’s dependence on imported oil
       DOE said the consortium has committed to initially infuse $69 million for the project.
       DOE, then, revealed that the Swire Group of UK, through Swire Production Solutions Ltd., is currently working with the Service Contract 14 consortium to develop the Galoc oil field, which would provide the system that would put the Galoc Field on early production.
       Aside from the Galoc oil field, Service Contract No. 14 also covers Nido, Matinloc and West Linapacan oil fields.