CNOOC Drills Wildcat in South China Sea

CNOOC reports that a wildcat drilled on HZ ("Huizhou") 26-3 in the Pearl River Mouth Basin of South China Sea was successful.

HZ 26-3-1 is located in the Huizhou trough in the eastern South China Sea, about 170 kilometers southeast of Hong Kong. It was drilled to a total depth of 3,780 meters in 110 meters water depth. Drill stem tests on a 7.94 mm choke flowed over 1,400 barrels of 41-43 degree of light gravity crude and nearly 2 million cubic feet gas per day.

Mr. Zhang Guohua, senior vice president of exploration commented, "Positive exploration results through independent activities in the area will help maintain the eastern South China Sea as a core production basin for CNOOC. Successes of this nature fuels further exploration interests in the area."

The Company owns 100% interest of the discovery.