CNOOC Makes Discovery in South China Sea

CNOOC has made a discovery with a gas wildcat well, PY34-1-1, in the PY34-1 area of South China Sea. The well drilled by the semisubmersible, Nan Hai VI and tested to produce 13 million cubic feet of gas per day.

PY34-1-1, located in the Pearl River Mouth Basin of Eastern South China Sea, is about 30 kilometers southwest of PY30-1, a previously discovered gas bearing structure albeit untested.

Mr. Ru Ke, Executive Vice President of the Company, said, "The success of this well and a series of other gas discoveries made in this area may be showing us a pattern of how gas reserves are deposited in this area. We may be looking at 'cluster development' for gas if more meaningful gas accumulations are found." The discovery is 100% owned by the Company.