NDO 0.00% 9.8¢ nido petroleum limited

nido offered blocks - read here

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    Nido Petroleum Limited
    A.B.N. 65 086 630 373
    Level 3, 41-43 Ord Street
    West Perth WA 6005
    PO Box 1190, West Perth WA 6872
    Tel: (08) 9321 2844
    Fax: (08) 9321 2544
    7 September 2005
    Australian Stock Exchange Limited
    Company Announcements Office
    Level 10 Exchange Centre
    20 Bond Street
    SYDNEY NSW 2000
    Dear Sir
    Nido Petroleum Limited (“Nido”) is very pleased to announce that it has been offered 5
    new blocks in the UK North Sea as part of the UK Government 23rd Licencing Round.
    The bid was awarded on a promote basis providing 2 years for evaluation prior to drill or
    drop decisions.
    The highlights of the award are as follows:
    • 2 new blocks, 47/8d and 47/13c (refer to Figure 1) in the Southern North Sea (“SNS”)
    Gas Basin. The new blocks are contiguous and technically synergistic to our existing
    gas discovery Blocks 47/9c, 48/1b and 48/2c.
    • Nido applied for both SNS blocks and will maintain a 50% equity interest with our JV
    partner Norwest Energy NL.
    • The new SNS blocks are immediately along structure of the Amythyst Field
    (750BCF) operated by British Petroleum. The new blocks provide Nido with a critical
    mass of 5 exploration blocks in this strategic area.
    • Nido has also been awarded 3 new blocks (refer to Figure 2) in the Northern North
    Sea (“NNS”), Inner Moray Firth, a highly competitive area. These new NNS blocks
    provide Nido with a new entry into the North Sea Oil Fairway.
    • The NNS blocks were awarded to UK company Stelinmatvic Industries Ltd
    (“Stelinmatvic“) with Nido as a JV partner. Stelinmatvic is headed by Mr Steve
    Bushell who has extensive North Sea experience.
    Paul Quaife, Head of Exploration, today stated that “with the award of 5 blocks in the UK
    Government 23rd Licencing Round, we have achieved a strategic position in the
    Southern North Sea Gas Basin. The award of the 3 blocks in the Northern North Sea
    provides us with an entry to the highly regarded Northern North Sea oil fairway. We
    attribute this success to the recent strong growth of our Company which now provides us
    with a number of options to create value from our UK acreage position”.
    Dave Whitby, Nido’s Managing Director says “the UK gas industry is on a high: high
    demand for new gas and high commodity prices. Having worked for the last decade
    developing greenfield gas projects in Indonesia for ConocoPhillips, the UK opportunity
    was one we could not pass up”.
    “In February 2005, Nido contracted the energy consulting group, Wood Mackenzie,
    based in Edinburgh, to give a detailed analysis of the gas industry in the UK from a
    commercial and marketing perspective. Based on the results of this study Nido
    aggressively pursued blocks in Round 23. Nido views the gas market in the UK as
    • Gas reserves in the Southern Gas Basin are 83% depleted.
    • Production is predicted to decline from 599 mmscfd in 2005 to 407 mmscfd by 2007.
    • Pipeline infrastructure has 1,600 mmscfd of surplus throughput capacity
    • Demand for gas in the UK is forecast to grow from 10,800 mmscfd to 13,000 mmscfd
    by 2015.
    • Supply is forecast to drop from 9,400 mmscfd in 2005 to 3,800 mmscfd by 2015.
    • Gas prices in the UK track closely to the US prices”.
    “Nido is thrilled that its UK strategy is taking shape. Nido’s acreage position has reached
    critical mass to give us a number of options to create value in the near and long-term”.
    For further information, contact:
    Mr Dave Whitby
    Tel 61 8 9321 2844
    Newly awarded Blocks 47/8d & 47/13c
    Existing Blocks 48/1b, 48/2c and 47/9c
    Figure 1
    Nido Petroleum Limited New Blocks Southern North Sea Gas Basin
    Figure 2
    Nido Petroleum Limited New Blocks Northern North Sea Oil Basin
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