In a statement today, the company said the joint venture plans to spend about $US22.5 million ($A28.9 million) between now and 2012 exploring the gas potential in service contract 63, formerly known as Area 1, which covers 1.056 million hectares and is contiguous with its existing acreage.
The partners primarily plan to evaluate the potential of the Aboabo-1 gas discovery, which flowed 50 million cubic feet of gas per day on drill stem test in 1980.
Nido senior geoscientist Sharon Tiainen said the discovery represented a “potentially very significant” extension of the proven NW Palawan hydrocarbon basin in the south and direction of the huge new oil fields, offshore northern Sabah.
“The acquisition of new seismic data as part of our initial work program will enable us to map this relatively under-explored area for the first time,” Tiainen said.
“We will be very interested to see if the Miocene turbidites are also developed in this area as they are to the north.”
Nido was awarded the 50% interest in SC63 at a signing ceremony on Friday involving its vice president Leonardo Ote, Philippine Secretary of Energy Raphael Lotilla and PNOCEC president and chief executive Raphael Del Pilar.
The company said the acquisition meant it was now the second-largest petroleum acreage holder in the country.
