Perth, Australia-based Nido Petroleum (ASX: NDO) expects to bank in free cash flow of $45 million in 2014 following the start-up of production from the Galoc Phase II development in the Palawan Basin, offshore Philippines.
This will increase the company’s 22.88% share of production up to 2,700 barrels per day of oil, up from the previous 900bpd.
The development, operated by fellow Australian Otto Energy (ASX: OEL), is also expected to increase field life past 2020.
Nido said it will use the cash to fund planned work programs in Indonesia and the Philippines.
These include the Baragatan prospect in SC63, Philippines, the planned start of oil production in 2015 from the West Linapacan re-development in SC14C2.
The company is also participating in the drilling of two wells with Lundin Petroleum (STO:LUPE) in the Baronang production sharing contract offshore Indonesia.
Nido has also entered into three Production Sharing Contracts (PSC) in the Penyu and West Netuna basins in Indonesia. It will earn a 10% participating interest in the PSCs and has the right to increase its stake to 20% in each.