Roc Oil Says Beibu Gulf Program to Begin Mid-March

The latest drilling rig schedule provided to ROC suggests that the first well in the multi-well drilling program offshore China is now likely to commence during the second week of March, subject to a timely release of the rig from its current operation.

As previously reported, the first well in the program, the Wei 12-7-1 exploration well, will take about ten days to test a prospect with the potential to contain several tens of millions of barrels of recoverable reserves.

Wei 12-7-1 will be followed immediately by another ten day well, Wei 12-8-3, an appraisal well of the Wei 12-8 oil accumulation which is estimated to have the potential to contain recoverable reserves of between 20 and 30 MMBO, subject to successful appraisal.

Subject to the results of the first two wells, the Block 22/12 Joint Venture has made provision to drill up to three more back-to-back wells as part of the current drilling program. In order to drill the fourth and fifth wells in this program, the results of the first two or three wells would have to be very compelling.

The Block 22/12 Joint Venture partners are Roc Oil as operator with a 40% stake; Horizon Oil with 30%; Petsec Energy with 25% and Oil Australia Pty Ltd with the remaining 5%. In the event of a commercial development within Block 22/12 the interests held by the current joint venturers will reduce on a pro-rata basis by up to 51%, if the China National Offshore Oil Corporation exercises its right to participate for up to a 51% equity level in the development.