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Thursday, August 25, 2011

ROC Pumps Oil at Zhanghai Block Offshore China

- ROC Pumps Oil at Zhanghai Block Offshore China

Thursday, August 25, 2011
Roc Oil Co. Ltd.
by SubseaIQ

Roc Oil (Bohai) Company, a wholly owned subsidiary of ROC, advised that production has commenced from the first appraisal well drilled in the new Zhanghai block – one of two adjoining blocks added to ROC's existing Zhao Dong Block Contract in March 2011 with the aim of commercializing previous near field discoveries in the area and encouraging further appraisal activity.

The appraisal well (ZD CP2N-H-1) commenced drilling from the Zhao Dong C4 platform on July 15 and intersected 310 meters of horizontal reservoir section. The well was completed and production through existing C4 facilities has commenced at an initial rate of 3,546 BOPD. PetroChina exercised its rights under the PSC to participate with a 51% interest in the new Zhao Dong blocks on the commencement of completion activities and commercial development of the well, effective August 12. The interests in the two new additional blocks are now PetroChina 51%, ROC 39.2% and Sinochem 9.8%.

ROC is now planning to drill a second appraisal well (ROC 80% cost obligation on dry hole basis) during 2012.

Commenting on the success of the well, ROC's Chief Executive Officer, Alan Linn, stated, "One element of ROC's strategy is to generate future growth by commercializing near field opportunities through existing infrastructure. Extension of the Zhao Dong block provides an opportunity to incrementally develop a number of existing discoveries through existing Zhao Dong facilities in parallel with ongoing development drilling activities. Exploration opportunities within this acreage could also impact the future profitability and recovery life of the existing assets.

"Production from the first appraisal well in the additional Zhao Dong blocks is a positive outcome for all joint venture partners and represents the achievement of another of ROC's key strategic objectives for 2011: to deliver a new production or pre-development opportunity in China."

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