Nido Petroleum has acquired 10% interest in SC63, located in North West Palawan Basin off Philippines, from PNOC-EC. This transaction marks the execution of the second stage of the farm-out agreement signed on 16-Jan-2014 between Dragon Oil and Nido.
Under the agreement, Nido will be required to contribute $2 million towards the cost of the Baragatan-1 well located in the service contract.
In addition, Nido has received a net payment of approximately $1.63 million for past seismic costs through this 2 stage farm-in process.
Post-transaction SC63 ownership: PNOC-EC (40%, operator), Dragon Oil (40%) and Nido (20%).
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.