Zhao Dong C & D Oil Fields Start Up Production Offshore China

Zhao Dong Project
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Zhao Dong Project
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ROC's wholly-owned subsidiary, Roc Oil (Bohai) Company, advised that work in relation to construction, installation and commissioning of the new conductor pod ("CP2"), Pipeline Terminal ("PT") and pipeline connections approved under the Unit Development Plan for the C4 Oil Field and the Extended Reach Area ("ERA") of the C and D Oil Fields in the Zhao Dong Block, Bohai Bay, offshore China has achieved operational status and oil production from the new facilities has commenced.

Wells are being progressively brought on line and commissioning work is ongoing. During the first phase of commissioning of the new facilities, oil production will be established from seven wells. Three of these oil producers are located in the C Field and one in the D Field of the ERA (ROC interest: 24.5%). The final three wells are in the unitized C4 Oil Field (ROC interests: 11.575%).

It is also expected that three more ERA and one more C4 well will be drilled and brought into production before conclusion of the 2008 drilling program.

 Expansion work at the existing Zhao Dong platforms approved under the Incremental Production Plan ("IDP") also took a significant step forward with the sail-out and successful installation of the ODB drilling platform on October 8. Commissioning work is continuing and drilling from the platform is expected to commence in November as scheduled.

Construction on OPB, the second processing platform to be located at the Zhao Dong field, continues on schedule. Once fabrication is complete, the OPB is scheduled to sail out and be commissioned in Q2 2009.

Commenting on the commencement of oil production from the new facilities, ROC's Chief Executive Officer, Bruce Clement, stated, "The project has been completed on schedule with more than 2.2 million man-hours worked without a reported lost time injury. This is an outstanding achievement by the Zhao Dong team on a project completed in the intense activity the construction industry saw in 2008, particularly so in China given the disruptions experienced from natural disasters and the Olympics where power cuts, restrictions on transportation and logistics and increased security measures all impacted on the project."


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