CNOOC Makes Discovery in Eastern South China Sea

CNOOC sees more success with the Panyu (PY) 34-1-2 appraisal well in the Eastern South China Sea.

PY 34-1-2, about 250 kilometers southeast of Hong Kong, is an appraisal well drilled on PY 34-1 structure in Baiyun Sag. The well was drilled to a total depth of 3600 meters in 200 meters of water. PY 34-1-2 was tested to produce 18.42 million cubic feet of gas per day on 12 mm choke during drill stem test.

PY34-1 discovery is about 10 kilometers southwest of PY 30-1 gas discovery which was made late 2002.

The preliminary development plan of PY30-1 and PY 34-1 calls for an integrated design to add productions from smaller reserves in the area to capture further economics. The gas is targeting the fast growing Guangdong gas market.

Mr. Zhang Guohua, the Senior Vice President of the Company commented, "PY 34-1 is a nice addition to the significant gas reserve at PY 30-1. Developed together, it is expected to enhance returns."

The Company acts as the operator and owns 100 percent interest of PY34-1 discovery.