ASX Announcement 7 October 2010 Market Update Please refer below to the ASX release of Nido Petroleum Limited, SC 54A Operator, relating to an update on Service Contracts 54A and 54B for further details. Nido Petroleum Limited (Nido) is pleased to provide the following update on the current activities of the Company.

Tindalo Sidetrack Program As previously advised, Nido commenced drilling the Tindalo-1ST1 well on 13 September 2010.

The sidetrack well was completed on 25 September 2010 and following initial testing and stimulation, which included three separate acid soaks, a maximum flow rate of 9,000 barrels of fluid per day was recorded, natural flow, with an average water cut of about 50%.

Nidos technical team comprising in-house personnel and external advisers, is monitoring production rates and evaluating the results of the sidetrack.

The electric submersible pump (ESP) has been deployed following a brief shutin period, and has been switched on to increase fluid production.

The joint venture is assessing other options to mitigate water production.

Service Contract 54B Preparations are progressing for the drilling of the Gindara prospect within the first half of 2011 even though Nido is not required to drill a well in SC 54 until August 2011.

Long lead items for the drilling campaign are being acquired and a search for drill rigs has commenced.

Potential Farmout Update Nido refers to previous announcements on its search for strategic opportunities to farm-out its oil and gas assets.

As an update to that strategy, Nido advises that it is in advanced discussions with a significant oil and gas company in relation to Service Contract 54 Block B. The discussions whilst advanced remain confidential and incomplete.

Nido stresses that there is no guarantee that any final agreement will be reached despite these ongoing discussions.

Furthermore, if any agreement is entered into it will be conditional upon any necessary third party consents and approvals from the Department of Energy in the Philippines.

Nido will keep the market informed of any material developments concerning this matter and in relation to its strategy generally.


To read the full announcement please click here. http://www.stocknessmonster.com/news-item?S=NDO&E=ASX&N=508599 For more information please contact: Dr Mark Fenton Managing Director Kairiki Energy Limited Tel: 61 (8) 9388 6711 James Harris Professional Public Relations Tel: 61 (8) 9388 0944 --------------------------------------------------------------------------- This email was sent by James Harris, Professional Public Relations, 588 Hay Street, SUBIACO WA 6008 to Unsubscribe: http://esp.gewru.com/forms/u/77cb076/12414/1785106538.html ---------------------------------------------------------------------------