Nido Petroleum Limited (Nido or the Company) reported Wednesday that drilling at Boni-1 side-track well location within the Baronang Production Sharing Contract (PSC), Natuna Sea, Republic of Indonesia, reached Total Depth at 8,340 feet (2,542 meters) Measured Depth (MD) in the Lower Gabus Formation as per the drilling program.

Preliminary analysis of the LWD (logging while drilling) data indicates the objective Lower Gabus Formation sandstone in the Boni-1 stratigraphic trap are water bearing. Minor gas shows (C1 to C2) were encountered whilst drilling through Lower Gabus Formation sandstones which were well developed and of good reservoir quality. The Boni-1 side-track will be permanently plugged and abandoned in conjunction with Balqis-1.

Nido Petroleum Limited’s Managing Director, Phil Byrne, commented, “Although Boni-1 was testing a higher risk stratigraphic trap the result in conjunction with Balqis-1 well is a disappointing outcome. There are clearly good quality sandstone reservoirs developed in the Upper and Lower Gabus Formations in this part of the Baronang PSC. However, it is too early to determine why the wells failed to encounter hydrocarbons in these reservoirs. Over the next few months we will be working closely with the Operator Lundin Baronang B.V. to understand the implications of the well results on this part of the PSC”.