Nido Petroleum Limited (Nido) and its joint venture partner Kairiki Energy (Kairiki) provides an update on the evaluation of the recent Yakal and Tindalo oil.

Laurie Brown, Kairiki’s Managing Director adds, “Since the SC54 Joint Venture completed drilling the two back to back discoveries in October 2008 Kairiki has eagerly awaited the independent assessment of the resources in Tindalo and Yakal. The receipt of the independent report on our two initial discoveries confirms our view of the increased prospectivity of the SC54 permit. The SC 54 Joint Venture concludes that the results of the two wells have highlighted the potential for the extensive portfolio of shallow water pinnacle reefs, of which there are more than an additional twenty, to deliver significant value to the Joint Venture”.

Through a low cost rig-based Extended Well Test, these results now provide a platform for the joint venture to rapidly and cost effectively commercialise this resource, and beyond into the greater portfolio. We believe that this is an exciting project, offering the capability through cash flow proceeds to potentially self fund additional potentially high value projects such as Yakal and/or other discoveries and prospects in the area. We look forward to realising the value this opportunity presents, including the impact on the greater inboard portfolio.”

Tags: Kairiki Energy Limited, Nido Petroleum Limited