Nido Petroleum Ltd., an Australian oil and gas exploration firm, has entered into a joint study initiative with Southeast Asian National Oil Company to review the basins of the Philippines for their oil and gas potential.

In a statement, Nido said the study will start in October 2009 with Phase 1 running up to the end of the year. Depending on the outcome of the initial basin screening exercise, Phase 2 of the study will be entered into which will take a more detailed look at high-graded basin prospects and continue to the end of March 2010.

“Nido had just participated in oil and energy conferences in Perth (Good Oil Conference) and New York City (Rodman & Renshaw Global Investment Conference) where a number of our peers were also present, " the firm said.

It noted that “he mood seems to be guardedly optimistic and there appears to have returned a sense of calm to world markets. As we continue to entertain interest from potential partners for our current blocks, this returning confidence, albeit cautious, is making companies including Nido see a clearer way forward for next year.”

With this optimism in mind, Nido said they would continue to conduct their seismic studies in the Philippine waters and nearby exploration areas.

“In SC 63, we have made significant strides with our sub-surface interpretation with joint venture partner PNOC-EC (Operator), to better understand this geologically complex part of the NW Palawan Basin and an extension of the prolific basins offshore Brunei and Sabah, Malaysia,” it added.

Nido said there is a need to focus on areas where there are already studies of possible potential reserves.