Subject to securing Philippines Department of Energy approval and project financing, Cape Energy and Team Oil will farm in to the Philippines Joint Venture partner’s share of SC-14C for carrying costs through development. Nido's interest will remain at 22.279%.

Managing director David Whitby said that he was confident the project could be developed to take advantage of the high oil price environment.

"The development concept will include a staged development, focusing on the region around the Galoc-1 well, utilising state-of-the-art horizontal well technology and design to maximise production rates and eliminate reservoir damage," Whitby said.

A fit-for-purpose floating production system will be leased to ensure a cost-effective development at Galoc, with the initial production rates of the two wells expected to exceed 4,400 barrels of oil per day.