Nido Thrilled With the Results From Galoc 3

PERTH, Australia, Feb. 26 /PRNewswire/ -- Nido Petroleum Ltd (Nido) is
pleased to announce that the Galoc 3 horizontal production well flowed oil to
the surface unassisted at a maximum rate of 5,397 barrels per day during clean
up flow testing on 20 and 21 February 2008.
The purpose of the Galoc 3 clean up and oil flow to surface was to confirm
the integrity of the well and installed completion equipment as well as to
ascertain the well's ability to flow.
Pressure, temperature and flow rate data were recorded on surface and on
subsurface gauges located down-hole, close to the reservoir. Oil samples were
also collected and will be sent to a specialist laboratory for assay and PVT
analysis.
This data will provide confirmation of: initial reservoir conditions,
initial fluid properties, reservoir formation properties and the potential
productivity of the well to the FPSO.
Nido's preliminary analysis of the data overnight confirms the expected
maximum flow capacity of the well is consistent with its range of
predevelopment estimates. This will be confirmed by a full and detailed
testing program to be conducted once the well has been brought into production
service through the FPSO.
During normal production operations, production from Galoc 3 to the FPSO
will likely be controlled at rates below its maximum capacity to manage the
reservoir effectively to maximise total recovered oil volumes throughout the
life of the field. In addition, the FPSO processing capacity of the combined
flow of both wells is limited to a maximum of 25,000 bopd.
Nido's Deputy Managing Director, Ms Joanne Williams, said "We are excited
to reach this important stage in the Galoc development project. The Galoc-3
well has flowed as designed and is now ready for production service. Nido
congratulates the Operator, the Galoc Production Company, on successfully
flowing Galoc oil to surface for the first time since 1988, 20 years ago. We
eagerly await the results from Galoc 4 in the coming week."
Preparations will now commence for the installation of the Galoc 4 sub-sea
tree followed by similar testing of that well. The drill ship 'Energy
Searcher' will then be demobilised to Singapore prior to its release. The
installation of the mooring and riser system and hook-up to the FPSO will
follow over the coming weeks.
"The successful testing of Galoc 3 marks a major milestone for Nido and
most importantly for the country of The Philippines," says Chairman of the
Board, David Whitby. Nido is preparing for commercial production from Galoc
in April 2008.
For more information please visit www.nido.com.au.

For Further Information contact:
Sascha Stone
PR Advisor
Nido Petroleum Limited
Tel: +61 (08) 9473 0546/ Mob: +61 417 174 072
Fax: +61 (08) 9473 0576
Email: pmswa@ozemail.com.au

SOURCE Nido Petroleum

Sascha Stone, PR Advisor, Nido Petroleum Limited, +61-08-9473-0546, Mobile
+61-417-174-072, Fax +61-08-9473-0576, or pmswa@ozemail.com.au