The Perth-based company said the structures, located in a range of play types and water depths, were interpreted from a combination of the seismic surveys undertaken late last year in SC54 and SC58 and its existing database.

“Interpretation of the seismic data is ongoing and will be augmented in the third quarter of 2007 with further 3D seismic data acquisitions in SC 54 and SC 58, aimed at maturing a range of leads to prospect status for drilling from mid-2008 onwards,” Nido said on Friday.

Following the acquisition of 640 square kilometres of 3D data as part of the Abukay survey using the MV Veritas Viking II, onshore processing of this data began on January 8, by CGGVeritas.

Preliminary interpretation of the data has not only confirmed the presence of the pre-3D seismic leads identified in the 2004 Northwest Palawan Basin study conducted with BHP Billiton and Paladin, but has also enabled the definition of several new potential targets, according to Nido.

“The improved image quality has confirmed the Coron North structure as a large robust closure at ‘Top Nido’ level and also the development of the complex Miocene-aged ‘Princesa’ turbidite play identified on the original 2D seismic data,” the company said.

Nido said it would continue to mature these key leads over the next months, which would include the acquisition of about 180sq.km of 3D seismic data to further mature the ‘Princesa’ feature in July.

In tandem with the 3D interpretation, a comprehensive review of the shallow water areas of SC 54 is also underway, focused on the productive Nido Limestone pinnacle reef play.

Initial interpretation has identified several pinnacle reef trends in the vicinity of the producing Nido oil field, which have not been optimally tested by drilling, according to Nido.

“The shallow water setting and historically high success rates of the pinnacle reef play complement the deeper water leads being matured,” the company said. “This will allow the development of a balanced prospect and lead inventory with respect to risk and potential value within SC 54.”

Nido also completed the acquisition of 3184km of new 2D seismic data in SC 58 as part of the Talusi survey in late 2006 using the MV Veritas Voyager vessel at a cost of $US2.6 million.

The company said a preliminary data review has confirmed the presence of an extensive deep water fairway comprising four major play types: Nido platform carbonate in large structural closures; large Nido limestone reefal build-ups; Miocene-aged ‘Galoc clastics’ turbidite plays; and Miocene-aged ‘Pagasa’ turbidite plays.

The latter two Miocene plays are either draped over deeper structural closures at Nido Limestone level or involved in potential stratigraphic traps, the company said.

Nido has engaged Gaffney Cline & Associates based in Singapore to assist with the initial subsurface interpretation of this data.

Over the next couple of months, the key objective of this work will be to develop a SC 58 prospect and lead inventory from which Nido can determine the location and volume of 3D seismic data to be acquired in SC 58 in September.

Meanwhile in SC 63, preliminary technical work has begun on the evaluation of the block by operator, PNOC Exploration Corporation (PNOC-EC).

“Although this work is at an early stage of development, PNOC-EC and Nido are currently discussing the opportunity to accelerate the subsurface evaluation of SC 63, which contains the Aboabo-1 gas discovery located in the southern sector of the block,” Nido said.

In SC 54, Nido has a 60% stake and is operator; the other partner is Yilgarn Petroleum Philippines, which is a subsidiary of Western Australian miner, Yilgarn Gold.

In SCs 58 and 63, Nido has a 50% stake. The operator and other partner is Philippine National Oil Company (PNOC).