Nido Petroleum Ltd announced that the Tindalo Oil well is producing better than expected oil output during a test flow of the oil well. It was initially expected to produce only about 7,000 to 15,000 barrels per day (bpd) but as of June 5 it was producing about 15,000 to 18,689 bpd. Another important fact that was mentioned was that the oil had flowed without the aide of pumping equipment and was flowing via the natural pressure from the well.
Oil obtained during the test flow was stored and will be sold instead of being burned off like in normal practice.
The Tindalo Oil well is covered by SC 54A issued by the Department of Energy. Nido Petroleum holds a 42.4% ownership of SC 54A while its other partners are Kairiki Energy Ltd. (30.1%) Trafigura Ventures III B.V.15.1% and TG World Energy Corp (12.5%). Nido Petroleum had initially discovered the Tindaol well in October of 2008.
Nido Petroleum said that it will use the profit they will earn from the Tindalo well to fund five other shallow-water well exploration and drilling programs in Palawan. They said that they had already identified 20 shallow-water prospects in the area that are projecting to hold about 200 million barrels of oil reserves.
[source]
Category: Oil
