The 3D seismic survey area in the prospective northern part of the contract area comprises 824 square kilometres of full-fold coverage, an increase from the previously announced 653sq.km, due to additional lead potential identified on the block.

Acquisition is due to begin on October 28 and is expected to be completed by November 30.

Nido managing director Dave Whitby told PetroleumNews.net that the Palawan Basin is analogous to offshore West Africa and it could deliver discoveries similar to those made by Australian companies off Mauritania.

In order to deliver best quality product from the acquisition a comprehensive state-of-the-art processing flow, up to and including, hybrid pre-stack depth migration has been agreed with Veritas, Yilgarn said.

Working in close collaboration with Veritas, delivery of interim products has also been agreed starting with an ultra-fast track cube expected to be delivered within two weeks from acquisition completion.

This will help ensure rapid and efficient turnaround of the interpretation leading to build of a risked and ranked high-graded prospect inventory, which can start from as early as December.

The 3D expanded coverage will deliver an enhanced prospect inventory which includes:

• Coron North, an undrilled four-way Malampaya-style structure with reef build-up potential;

• deepwater Pagasa turbidite fairway (Princesa fan mound leads)

• Coron-1 (previously drilled by Fletcher Challenge in 1993 with an untested possible 120m oil column)

• a Coron-Nido interpreted fill-spill chain; and

• a Pagasa turbidite feeder system

The improved acquisition design will now provide an average line length of 26km compared with the previous line length of 21km. While the redesign has resulted in a survey some 25% larger than the previous survey design, this has been achieved for only a 10% cost increase, according to Yilgarn.

Veritas is using its flagship M/V Veritas Viking II 3D vessel, said Yilgarn technical director Laurie Brown.

“Yilgarn has previously worked in close collaboration with Veritas on a number of surveys, both 2D and 3D, through West Africa,” Brown said.

“It is strategically significant that, in being prepared to take some element of risk in the contract payment structure, Veritas share our belief in the potential for this emerging area to deliver.

“Through this relationship, we have been able to punch outside our weight and deliver a survey of a size, timing and cost that now allows us to meet all our strategic objectives within the current sub-phase and on budget.

“We are confident that not only will we receive best quality product as soon as it can be delivered, but that we have the capacity and skills, through best practice interpretation techniques coupled with global industry contacts, to rapidly turn this into value through the prospect inventory.”

Yilgarn is earning a 40% stake in the permit by funding the acquisition and processing of seismic data on a 4:3 promote basis and the drilling of one well on a 2:1 promote basis.

The joint venture also included the Philippines National Oil Company (PNOC).