The Perth-based Nido believes the fields could yield more oil “over and above existing estimates of production”.
Nido is especially confident the Nido-B Field, in the Northwest Palawan Basin, Philippines, is capable of producing around 2 million barrels of oil recoverable.
In a statement the company said, “The next step in the process is to introduce an operating company which will fund production enhancement operations. Negotiations are underway to farm out part of the equity acquired from Vaalco to an operating company.”
“It is expected that an agreement will be finalised in the next few weeks,” added the company. The one field which is not being covered under this arrangement is the Galoc Field in SC-14, which Nido and its JV partners are currently in negotiation “with another party” to develop.
