NIDO TO DRILL GALOC-7 SIDE TRACK OFFSHORE PALAWAN

Nido Petroleum on behalf of the Galoc Joint Venture advises that on 13 April 2017 the Deepsea Metro I reached Total Depth of 2,373 metres having drilled through the Galoc Clastic Unit reservoir of the Galoc Mid Area. The reservoir objective for the Galoc-7 well was encountered between 2,240 to 2,358 metres MD with a gross pay of 115 metres and net sand thickness of 8 metres comprising primarily of poor quality sandstone and claystone. Preliminary Logging Whilst Drilling (LWD) and wireline log data recorded through this interval indicates the reservoir unit contains hydrocarbons and water. At this stage the Galoc-7 well results are inconclusive in terms of the potential commerciality of the Galoc Mid Area of Block C1 of Service Contract 14. The Company will therefore continue to evaluate the results of the Galoc-7 well over the coming weeks and will incorporate this information into the relevant sub-surface models along with the results of the Galoc-7ST-1 well when they are available. The Deepsea Metro I is now in the process of plugging and abandoning the Galoc-7 well and preparing to drill out the Galoc-7ST-1 well in the Galoc Central Field Area as planned. (Source: Nido Petroleum)