ROC Finalizes Option to Farm Out 40% Stake in Block 09/05 in Bohai Bay
Roc Oil (Bohai) Company, a wholly owned subsidiary of ROC Oil Company Limited (ROC), reported Thursday the successful completion of the 63-square mile (162-square kilometer) 3D ocean bottom cable (OBC) seismic campaign in the 09/05 exploration license, Bohai Bay, offshore China.
The program was completed ahead of schedule, within budget and without incident. Data quality is good and seismic processing has commenced and will assist the team in high grading the prospect inventory, in preparation for commencement of early exploration drilling.
ROC is also pleased to announce that it has finalized a farmout option agreement on the 09/05 licence with Horizon Oil Limited (HZN).
Under the terms of the agreement HZN will pay 40 percent of all petroleum exploration costs incurred until the exercise or lapse of the option, which entitles HZN the right to farm into a 40 percent working interest in Block 09/05. In advance of spudding the first exploration well HZN can exercise the option to acquire the 40 percent interest by paying a 2 for 1 promote on two exploration wells. The transfer of interest to HZN will be subject to China National Offshore Oil Corporation's approval.
CEO Alan Linn said:
"The team has been extremely efficient in completing a high quality 3D seismic survey significantly ahead of schedule and we are looking forwards to progressing our prospect evaluation and moving into well planning.
ROC constantly looks for a balance of value growth and risk management in our business and the farmout option with Horizon, whom we already partner in the recently successful Beibu fields’ development, is an efficient way to optimize the value of our current China exploration portfolio."
Block 09/05 & Zhao Dong Location
Block 09/05 has an area of 129 square miles (335 square kilometers) and is 9 miles (15 kilometers) north and on trend with ROC’s current operating asset in Bohai Bay, the Zhao Dong field. The 3D seismic acquisition was completed Sept. 12 and covered an area of 63 square miles (162 square kilometers). The data is currently being processed it is anticipated that survey results will be completed in early 2014.
ROC was awarded the exploration block by China National Offshore Oil Corporation (CNOOC) in May 2012 and signed a Petroleum Contract shortly thereafter. Upon a successful discovery, CNOOC has the right to participate in up to 51 percent of any development.
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