Australian oil and gas company Nido Petroleum Ltd. and its joint venture partners plan to drill an appraisal well at the Galoc mid-area in northwest Palawan in the first quarter next year in preparation for the expected depletion of the Galoc reserves by 2019.
Nido said in a report to the Australian Securities Exchange it planned to drill the Galoc-7 appraisal well and an associated side-track (Galoc-7/7ST) in early 2017.
“Galoc-7/7ST will appraise the currently untested Galoc mid area of the Galoc field… If the Galoc-7/7ST is successful, the subsequent development of the GMA will materially increase reserves and production, substantially extending the life of the Galoc field,” it said.
The planned well will appraise the highly prospective GMA, an extension of the north of the Galoc field and the successful drilling will result in the commencement of the Galoc phase three development and first production in 2019.
“Production at the Galoc field is currently declining and based on Nido’s proven reserves, estimates is anticipated to become sub-commercial in 2019,” Nido said.