Nido Launches Takeover Offer for Otto’s Galoc Interest

Mining Weekly reported that Nido Petroleum Ltd. (ASX:NDO) has bid $108 million for Otto Energy Ltd.’s (ASX:OEL) 33-percent interest in the Galoc oil field, located in the Philippines.

As quoted in the press release.

Nido said on Friday it would pay a $10.8-million deposit for Otto’s subsidiary Galoc Production Company, which owns Otto’s share in the Galoc oil field, and would assume all production rights and liabilities, with effect from July 2014.

Nido MD Philip Bryne stated:

Acquiring Otto’s stake in Galoc is a logical growth opportunity for Nido and one that fits neatly with the strategy Bangchak communicated upon taking majority ownership of the company earlier this year.

Nido’s increased participating interest and appointment as operator will also put the company in a controlling position as the joint venture moves forward towards a further potential expansion of the Galoc oil field. We look forward to building on our role as a consolidator in the South-East Asian oil and gas sector.

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