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Nido completes acquisition of Otto Energy’s stake in the Galoc oil field
2015

Record Point has acted as the exclusive financial advisor to ASX-listed Nido Petroleum Limited (Nido) on its acquisition of Otto Energy Limited’s (Otto) 33% working interest in the Galoc oil field.

The transaction is the first in what could be a series of acquisitions for Nido, which has previously been earmarked as an investment vehicle for Thai-based parent Bangchak Petroleum (Bangchak). Record Point had previously acted as financial advisor to Bangchak on its takeover offer for Nido in August 2014.

The Galoc oil field is located in a sandstone reservoir in the Palawan Basin, offshore Philippines, and has produced more than 13.3 million barrels of oil since being commissioned in 2008.

Nido approached Otto in December 2014 with a US$108m offer for the Galoc Production Company WLL, the holder of Otto’s 33% working interest in the Galoc oil field. The offer was unanimously recommended by Otto’s Board and was deemed superior to a separate US$101.4m proposal received from Singapore-based Risco Energy Investments. Otto’s shareholders voted in favour of the transaction and it was subsequently completed in February 2015.

The acquisition increases Nido’s working interest in the Galoc field to 55.88% and will boost daily oil production to more than 4,000 barrels. The divestment will assist Otto to fund its exploration program for the next two years with a focus on their prospective exploration program in on shore East Africa.