PERTH--27 Sep--Medianet International-AsiaNet/InfoQuest Nido Petroleum Ltd (Nido) is pleased to announce that the drill ship ‘Energy Searcher’ has come ‘on-hire’ to the Galoc Project which signals the start of the Galoc oil field development, the first offshore development in the Philippines for almost seven years. ‘Energy Searcher’ arrived in Singapore on Monday 24th September where it will stay for about five days to load out the drilling and testing equipment, sub-sea trees and other materials. The vessel will then sail to the field location, some 60km offshore from Palawan Island, Philippines. The first Galoc well is scheduled to begin drilling in early-October and well construction activities are anticipated to continue until late-December 2007, subject to weather. In 2006, Field Operator Galoc Production Company (GPC) contracted the drill ship ‘Energy Searcher’ on behalf of the Galoc Joint Venture to drill the two horizontal development wells in the Galoc structure. Ms. Joanne Williams, Nido’s Deputy Managing Director said this is excellent news for the Galoc Project and Nido. "Confirmation that the drill ship is now on-hire means that the rubber is hitting the road on the Galoc development," Ms. Williams said. "We expect to see first oil in the first quarter of 2008 and cash flow from the development will support Nido’s big-hit exploration drilling programme beginning in the second half of 2008," Ms. Williams said. Nido's Philippines Country Head, Mr. Jocot de Dios was also very excited and said it was not just good news for the company, but also for the Philippines as production from Galoc will double the Philippines' indigenous oil production. "With the recent run up of oil prices world wide, domestic oil production will go a long way in ensuring the country’s oil security profile," Mr. de Dios said. "Nido's investment in this project is proof of the company's firm commitment to the Philippines as an investment destination for the oil and gas sector and we remain confident with what the Palawan basin has to offer," Mr. de Dios said. The Floating Production Storage and Offloading (FPSO) vessel 'Rubicon Intrepid' is scheduled to arrive on site in February 2008 and first oil is expected shortly after an extensive well testing programme, with an initial production capacity in excess of 15,000 barrels per day. Nido has a 22.279% working in interest in Galoc oil field. For more information please contact: Sascha Stone Media Relations Officer pr@pmsmarketing.com.au (+61 8) 9473 0546 (+61 8) 9473 0576 Source: Nido Petroleum Ltd