Galoc Project Execution Begins With Drill Ship on Hire

PERTH, Australia, September 27 /PRNewswire/ --

Nido Petroleum Ltd (Nido) is pleased to announce that the drill ship
'Energy Searcher' has come 'on-hire' to the Galoc Project which signals the
start of the Galoc oil field development, the first offshore development in
the Philippines for almost seven years.

'Energy Searcher' arrived in Singapore on Monday 24th September where it
will stay for about five days to load out the drilling and testing equipment,
sub-sea trees and other materials.

The vessel will then sail to the field location, some 60km offshore from
Palawan Island, Philippines.

The first Galoc well is scheduled to begin drilling in early-October and
well construction activities are anticipated to continue until late-December
2007, subject to weather.

In 2006, Field Operator Galoc Production Company (GPC) contracted the
drill ship 'Energy Searcher' on behalf of the Galoc Joint Venture to drill
the two horizontal development wells in the Galoc structure.

Ms. Joanne Williams, Nido's Deputy Managing Director said this is
excellent news for the Galoc Project and Nido.

"Confirmation that the drill ship is now on-hire means that the rubber is
hitting the road on the Galoc development," Ms. Williams said.

"We expect to see first oil in the first quarter of 2008 and cash flow
from the development will support Nido's big-hit exploration drilling
programme beginning in the second half of 2008," Ms. Williams said.

Nido's Philippines Country Head, Mr. Jocot de Dios was also very excited
and said it was not just good news for the company, but also for the
Philippines as production from Galoc will double the Philippines' indigenous
oil production.

"With the recent run up of oil prices world wide, domestic oil production
will go a long way in ensuring the country's oil security profile," Mr. de
Dios said.

"Nido's investment in this project is proof of the company's firm
commitment to the Philippines as an investment destination for the oil and
gas sector and we remain confident with what the Palawan basin has to offer,"
Mr. de Dios said.

The Floating Production Storage and Offloading (FPSO) vessel 'Rubicon
Intrepid' is scheduled to arrive on site in February 2008 and first oil is
expected shortly after an extensive well testing programme, with an initial
production capacity in excess of 15,000 barrels per day.

Nido has a 22.279% working in interest in Galoc oil field.

For more information please contact:
    Sascha Stone
    Media Relations Officer
    pr@pmsmarketing.com.au
    +61-8-9473-0546
    +61-8-9473-0576