The funds will be used to conduct further activity on the Pagasa Turbidites in the Northwest Palawan Basin in the Philippines and for general working capital.

Nido has recently been conducting more work on this play type and believes that its prospects are such that it should accelerate the work in order to attract a major oil company as a farminee.

Earlier this week the Philippines Department of Energy announced a bid round for acreage in the Northwest Palawan Basin and the Sulu Sea, and has received a large amount of interest in the blocks from international companies.

The acreage that Nido already has title to is adjacent to much of the bid round acreage and is also in a proven oil fairway.

The Galoc options are an interesting tool to anchor investors to what Nido management sees as one of its major assets. The 1.7 cent option is exercisable at 2 cents when Nido commits to the production studies for Galoc Phase 2 development, or on 30 June, 2005, whichever event is earlier.

The options are the same series as was issued earlier this year, said managing director, Charlie Morgan.