PHILIPINE specialist Nido Petroleum Limited has launched anA$31.9 million capital raising to help fund its share of a major development programme for the offshore Galox field.
Funds from the Pro‐Rata Renounceable Entitlement Offer will be used to fund the drilling of Nido’s participating interest share1 of the drilling of the Galoc‐7 appraisal well and, if required, an associated side‐track (Galoc‐7/7ST) scheduled to occur in the first quarter of 2017.
Galoc‐7/7ST will appraise the currently untested Galoc Mid Area (GMA) in Nido’s core asset, Block C1 of Service Contract 14 which contains the Galoc Field, the Philippines main oil producer.
Nido, which is the operator of the Galoc Field, said the funds may also provide additional contingency for unbudgeted cost overruns associated with Galoc‐7/7ST and, in the event this contingency is not required, a small amount of working capital for post well analysis and, in the case of appraisal success, development planning. Nido’s budgeted share of the Galoc‐7/7ST is estimated to be A$24.0 million.
The Galoc Joint Venture has approved the expenditure associated with the work programme.
Nido said that if Galoc‐7/7ST is successful, the subsequent development of the GMA is expected to materially increase reserves and production, substantially extending the life of the Galoc Field.
BCP Energy International Pte Ltd which controls 81.25% of Nido has committed to take up all of its pro rata entitlement under the Entitlement Offer representing A$25.9 million in proceeds.