|Wednesday, November 10, 1999
Phillips China Inc., a unit of Phillips Petroleum Company has drilled and tested a fourth successful well on a large anticline in Block 11/05 of China's Bohai Bay. The PL 19-3-5 appraisal well was drilled to a total depth of 6,094 feet and encountered a gross pay interval of 850 feet, with approximately 260 feet of net pay in the Minghuazhen and Guantao formations. The company drilled the well in a previously untested fault block on the western flank of the PL 19-3 field, nearly 2 miles from the PL 19-3-1 discovery well. "The PL 19-3-5 well results are consistent with our pre-drill interpretation and establish the presence of oil on the field's western flank fault block, in an area with the same oil-water contact as we have found in previous wells," said Mike Coffelt, vice president of worldwide exploration. Phillips, in cooperation with China National Offshore Oil Corp. (CNOOC), has begun surface and subsurface conceptual studies of the PL 19-3 field to evaluate development alternatives. Phillips acquired the right to explore Block 11/05 in 1994 when it signed a petroleum contract with CNOOC. Phillips has a 100 percent interest in the 2.3 million-acre block. CNOOC has the right to participate with up to a 51 percent interest in any development in the block.