Nido Petroleum Limited : Galoc Drilling Update

ABN 65 086 630 373

18 September 2013

Nido Petroleum Limited (ASX: NDO) ("Nido" or the "Company") is pleased to provide the attached weekly update from the Operator in relation to the drilling at Galoc as part of the Phase II development.

For further information please contact:

Phil Byrne

Managing Director

+61 8 9474 0000 reception@nido.com.au

Michael Vaughan

Cannings Purple

+61 422 602 720 mvaughan@canningspurple.com.au

Join our electronic mailing list and find more information about Nido Petroleum at:

www.nido.com.au

Perth Office Registered Office | Aquila Centre Level 3, 1 Preston Street Como WA 6152 | P: +61 8 9474 0000 F: +61 8 9474 0099 | www.nido.com.au

Manila Office Unit 38B, 38th Floor, Philamlife Tower, 8767 Paseo de Roxas, Makati City 1226, Philippines | P: +63 2 856 5910 F: + 63 2 856 5494

18 September 2013

Manager of Company Announcements

ASX Limited

Level 6, 20 Bridge Street

SYDNEY NSW 2000

• The drilling phase of the Galoc-5H and 6H development wells has been successfully completed.

• Drilling has intersected a total of 1,645 metres of highly permeable reservoir interval in both wells.

• Remaining drilling rig based activities relate to the mechanical completion of the wells and installation of subsea trees.

Otto Energy Limited ("Otto") (ASX:OEL), as operator of the producing Galoc oilfield joint venture offshore the Philippines, provides the following update on the Galoc-5H and Galoc-6H drilling campaign in SC14C, part of the Galoc Phase II development project approved in 2012.

Progress

During the period from 0600 hours (AWST) on 11 September
2013 to 0600 hours (AWST) on 18 September 2013, drilled the G-5H well 8½" hole horizontally to a final total depth of 4,497 metres and commenced running the completion liner and assembly.

• ASX-listed oil and gas company with a strategy to grow its integrated oil and gas business across exploration, development and production

• Focused on South East Asia and East

Africa

• Operator of the producing Galoc oil field in the Philippines, which provides cashflow

• Opportunity rich with substantial exploration prospects and leads COMPANY OFFICERS

Rick Crabb Chairman

Ian Macliver Director Rufino Bomasang Director John Jetter Director Ian Boserio Director Gregor McNab CEO

Matthew Allen CFO/Coy Secretary

This marks the successful conclusion of the major drilling activities of the Phase II project with remaining drilling rig based operations being for well completions and installation of subsea trees. The G-5H and G-6H wells have been drilled to a combined total of 3,177m through horizontal reservoir section within which a significant 1,645m of net oil pay has been encountered. Data recorded during drilling shows high reservoir permeability in both wells which suggests good production deliverability will be achieved. Well deliverability will be confirmed when the wells are flowed to surface in the coming weeks for the well clean-up operations.
Planned upgrades to the FPSO Rubicon Intrepid, which will process the additional Phase II production, have also been successfully completed this week according to schedule. Delivery of subsea equipment and mobilisation of installation vessels are all on schedule to allow final tie-in work to be completed consistent with planned first oil from the G-5H and G-6H wells in November 2013.

Head Office 32 Delhi Street, West Perth WA 6005 Australia PO Box 1414, West Perth, WA 6872 Australia T: +61 8 6467 8800 F: +61 8 6467 8801

Manila Office 32nd Floor Philamlife Tower, 8767 Paseo de Roxas, Makati City 1226, Philippines T: +63 2 773 2700 F: +63 2 773 2801 info@ottoenergy.com ASX Code: OEL ABN: 56 107 555 046

Forward Plan

The forward plan is to run the G-5H completion liner and assembly and rigging up for the well clean-up flow to surface for both the G-6H and G-5H wells.

--Ends--

Contact: Matthew Allen

Chief Financial Officer

+61 8 6467 8800

info@ottoenergy.com

Media:

Dudley White

MAGNUS Investor Relations + Corporate Communication

+61 2 8999 1010

dwhite@magnus.net.au

Head Office 32 Delhi Street, West Perth WA 6005 Australia PO Box 1414, West Perth, WA 6872 Australia T: +61 8 6467 8800 F: +61 8 6467 8801

Manila Office 32nd Floor Philamlife Tower, 8767 Paseo de Roxas, Makati City 1226, Philippines T: +63 2 773 2700 F: +63 2 773 2801 info@ottoenergy.com ASX Code: OEL ABN: 56 107 555 046

Location and Proposed Depth

The Galoc field is located in Service Contract SC14C (Galoc Sub Block) in 290 metres of water approximately
65km North West of Palawan Island and 350km south of Manila in the Republic of the Philippines. The Galoc-
5H and Galoc-6H development wells are being drilled within the existing producing field that has delivered over 10 MMbbls of production since the field was commissioned in 2008.
The Galoc-5H and Galoc-6H development wells will be drilled to a total vertical depth of 2,190 metres with
1,777 metres of horizontal completion in the G-5H well and 1,389 metres of horizontal completion in the G-6H
well. Drilling is expected to take approximately 115 days including the flowing of the wells for clean-up.
After drilling of both Galoc-5H and Galoc-6H is completed, the DOF operated Skandia Skansen construction vessel will be used to install the subsea equipment and complete the hook-up of both wells to the FPSO Rubicon Intrepid.

First oil from the Phase II wells is expected in November 2013.

Head Office 32 Delhi Street, West Perth WA 6005 Australia PO Box 1414, West Perth, WA 6872 Australia T: +61 8 6467 8800 F: +61 8 6467 8801

Manila Office 32nd Floor Philamlife Tower, 8767 Paseo de Roxas, Makati City 1226, Philippines T: +63 2 773 2700 F: +63 2 773 2801 info@ottoenergy.com ASX Code: OEL ABN: 56 107 555 046

APPENDIX A: SUMMARY

Note: Depth is measured in total metres drilled below the rig rotary table or drilling floor

Joint Venture Partners:

Head Office 32 Delhi Street, West Perth WA 6005 Australia PO Box 1414, West Perth, WA 6872 Australia T: +61 8 6467 8800 F: +61 8 6467 8801

Manila Office 32nd Floor Philamlife Tower, 8767 Paseo de Roxas, Makati City 1226, Philippines T: +63 2 773 2700 F: +63 2 773 2801 info@ottoenergy.com ASX Code: OEL ABN: 56 107 555 046

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