Nido increases participating interest in Baronang PSC to 15%

By Ruli Setiawan

ASX-listed Nido Petroleum Limited announced Monday that it has increased its participating interest in the Baronang production sharing contract (PSC), offshore Riau Islands Province, from 10 percent to 15 percent.

The company said in a statement that this was in accordance with the terms and conditions of the farm-in agreement with Lundin Baronang BV.

In June of 2013, Nido announced that it had executed three separate farm-in agreements with Lundin Petroleum B.V. to participate in the Baronang, Gurita, and Cakalang PSCs in Penyu and West Natuna basins, offshore Riau Islands Province, under which the company earned a 10 percent participating interest in each PSC.

Under the terms of the agreements, Nido has the right to increase its participating interest in each of the three PSCs up to a maximum 20 percent.

Elsewhere, Nido said in the statement that on 21 February 2014 drilling at the Balqis-1 well location within the Baronang PSC reached the 13 3/8? casing point, at a depth of 768 meters Measured Depth (MD). Once casing is set, Lundin will drill ahead through the Arang Formation to the planned 9 5/8? casing setting depth at or around 1,443 meters MD.

Editing by Reiner Simanjuntak