Oil discovery, Beibu Gulf exploration drilling programme, WZ6-12-A7 well, offshore China

Tuesday, Nov 13, 2012

Roc Oil (China) Company, a wholly owned subsidiary of ROC and the operator of the exploration wells within the WZ6-12 and WZ12-8 West Oil Field Development areas, advises that the WZ6-12-A7 deviated step-out exploration well, designed to test the Sliver fault segment and the Liushagang footwall exploration prospects, reached a total depth (TD) of 2,658 metres (2,211 metres TVD) in the Liushagang formation on 11 November. The well was drilled by the HYSY 931 drilling rig located over the WZ6-12 Wellhead Platform.

The WZ6-12-A7 is the third successful well in a three well exploration programme. This well intersected a total of 10.4 metres (TVD) of net oil pay in the Weizhou formation associated with the Sliver prospect and 7" production liner is being run to enable future completion and tie-in for production. Oil samples and pressure data have been gathered to assist with determination of the extent of the oil column.

The well also encountered 79 metres (TVD) of net water wet sands with oil shows in the underlying Liushagang formation with up-dip potential remaining.

The exploration discoveries will be integrated into the current Beibu Development Project and the well results will be utilized to further optimize the development wells. In view of the positive exploration results, the WZ 6-12 area is now being re-examined for additional exploration potential. At least two additional development wells will be required for the WZ6-12 North field development. Targeted first oil production of the Beibu programme remains early 2013.

The HYSY 931 Rig (operated by CNOOC) will commence drilling the development wells over the WZ6-12 Wellhead Platform shortly, following suspension of the WZ6-12-A7 well. Provision has been made in the Beibu production facilities design to provide the flexibility to produce the new oil zones discovered during the exploration drilling programme.

Commenting on the well results, ROC’s CEO Mr Alan Linn said:

"ROC is very pleased with the successful completion of the Beibu Gulf exploration drilling programme and with the discovery of oil pay in one of the target objectives in the A-7 well. The successful and safe drilling of these wells ahead of schedule and under budget, typifies the strong and successful working relationship between the JV partners – CNOOC, COSL1 and ROC. This will also ensure the efficient integration of the discoveries into the overall development plan, delivering incremental reserves and additional production to the project."

Participating interests* in the Beibu Gulf exploration programme are:

Roc Oil (China) Company 40%
Horizon Oil (Beibu) Ltd 30%
Horizon Oil (Nanhai) LLC 25%
Oil Australia Pty Ltd (Majuko Corp) 5%

*For exploration drilling, the above interests are subject to CNOOC election of participation of up to 51% in any discoveries made

1. A CNOOC subsidiary and drilling contractor

Source: Roc Oil