Ann: Second oil discovery in WZ 12-10-1 exploration well, page-7

PNG Industry News 13th October

THE joint venture between Roc Oil and Horizon Oil in the Beibu Gulf Block 22/12, offshore China, has come to a happy conclusion for the year. The last well of the 2014 two-well exploration program discovered oil in the Jiaowei formation with a high porosity net oil pay of about 11m. Wireline evaluation logging programs have been run over the well, including pressure measurements, fluid sampling, formation imaging and sidewall coring and have confirmed the favourable porosities of about 31%. The discovery follows a similar result from the previous well last month which discovered oil in the top of the Jiaowei T42 formation over an interval of 5.5m, with high porosity net oil pay of 4.2m. Further work will now be undertaken to evaluate both the extent of the structure and reserves in the WZ12-10-2 well, and assess the most effective route for integrating these additional oil resources into the existing Beibu project. The discovery has prompted Roc to make a second supplementary target statement, adding the weight of the news to its bid to be taken over by Fosun. Fosun edged out the PNG-focused Horizon’s $800 million merger with Roc earlier this year, but seems to have left the relationship between the two joint venture companies intact. "I am very pleased with the back to back exploration success in the current Beibu exploration campaign,” Roc CEO Alan Linn said. “The new reservoirs will help in extending the longevity of the Beibu Gulf project and support the future integration of WZ12-8 East development. “These discoveries are a result of the very productive joint venture collaboration and cooperation with our partners CNOOC-Zhanjiang, Horizon and OAL. “The positive results we have been able to report during this programme are a direct result of successful team work.”