The Perth-based company said in a statement that first oil production from the offshore Philippines project remained on track for March.

So far, the JV has finished drilling the Galoc-3 well and is preparing to start drilling the second and final appraisal well, Galoc-4, in the current program.

During the drilling of the Galoc-3 well, Nido said 37.8 metres of reservoir rock core was recovered, which confirmed the presence of oil in the reservoir.

“There is a greater proportion of productive reservoir to non-productive reservoir rock (ie. net to gross) than was originally expected in the pilot well area,” Nido said.

“Reservoir average porosity is estimated to be within the predevelopment study range of 13% to 19%, [which] is another confirmation of the reservoir’s potential to contain the estimated volumes of oil.”

In addition, Nido said analysis of wireline logs have confirmed the Galoc-3 well intersected the top of the reservoir at 2180 metres below sea level, which was within one metre of the predevelopment prognosis.

“The reservoir pressures obtained during MDT logging (modular dynamic testing) indicate an oil column at the pilot well location that is as anticipated in predevelopment studies and further validates the development plan and estimate of oil volumes,” Nido said.

Fluid samples were also collected to confirm the presence and type of oil in the reservoir rock, the results of which are expected in five to six weeks.

Nido’s deputy managing director Joanne Williams said these were all “excellent results” from the appraisal program.

“Confirmation of oil in place has validated our positive view of the Galoc development and the analysis to date is consistent with the Gaffney,

Cline and Associates reserves certification,” she said.

“The pilot hole has achieved all of our data gathering objectives and our subsurface team is gratified that it has confirmed our predevelopment studies.

“GCA is now reviewing all the new data as we take the next steps towards recertification of the reserves.”