Philippine DOE Approves SC 54A and SC 54B Sub-Phase Extension

Nido Petroleum announced today that the Philippine Department of Energy (DOE) has approved the SC 54A and SC 54B Joint Venture partners' application for a 12 month extension to the current Sub-Phase 6 of SC 54. This Sub-Phase, which carries a one well commitment that was recently fulfilled by the Gindara-1 exploration well drilled in SC 54B, will now end on 4 August 2012.

Sub-block SC 54A: The twelve month extension will allow the SC 54A Joint Venture partners additional time to fully integrate the results of the 3D reprocessing project being undertaken over the greater Nido 1x1, Yakal, Tindalo and North Nido pinnacle reef trend into the subsurface understanding of the block. Integration of this work will provide the basis for developing and implementing the forward strategy for the block over the coming months including high-grading potential drilling targets to meet the well commitment in the succeeding sub-phase, Sub-Phase 7, should the SC 54A Joint Venture decide to enter into this sub-phase.

Sub-Block SC 54B: The twelve month extension provides the SC 54B Joint Venture with additional time to fully integrate the results of the recently drilled Gindara-1 exploration well into the subsurface understanding of the block and the implications of the 187 metre non-commercial hydrocarbon column found in Gindara-1 on the large Pawikan Lead, approximately 28 km south.

SC 54A working interests: Nido Petroleum Philippines Operator 42.4%; Yilgarn Petroleum Philippines (Kairiki) 30.1%; Trafigura Ventures III 15.0%; TG World (BVI) Corp 12.5%. SC 54B Working Interests: Shell Philippines Exploration 45%; Nido Petroleum Philippines Operator 33%; Yilgarn Petroleum Philippines (Kairiki) 22%.