CNOOC Says Reserves Upside Confirmed on BZ 34-1

CNOOC Limited reports that BZ 34-1-6 and BZ 34-1-7, another two appraisal wells were drilled successfully on BZ 34- 1 structure and reserves upside was confirmed.

Both BZ34-1-6 and BZ 34-1-7 are located in 21 metres of water depth, Southern Bohai Bay and encountered about 30 meters of oil and gas pay. The hydrocarbon-bearing in blocks 4 and 5 were confirmed and a big reserves upside on the BZ 34-1 as well with these two appraisal wells.

Mr. Zhang Guohua, Senior Vice President of the Company commented, "The appraisal results of these two wells were encouraging and confirmed that all five fault blocks on BZ 34-1 bear hydrocarbon, the reserves there are more than what we expected previously."

CNOOC owned a 100% interest of the discovery.