CNOOC's LD 10-1 Oil Field Production Beats Expectations

CNOOC reports that LD 10-1 oil field outperforms expectations. One well, LD 10-1-A11, becomes the first well flowing more than 7,000 barrels of oil per day, which sets a new record in daily production of a well in independent fields of Bohai Bay.

LD 10-1-A11, with a pay zone of 238 feet, was drilled in a good location of the oil-bearing structure of LD 10-1. Its production increased steadily after commencement on March 29 and achieved a steady daily production of 7000 barrels currently.

Twenty-two wells will be put into production according to the overall development plan of LD 10-1. With eighteen wells on line, LD 10-1 is producing now more than 28,000 barrels per day, which has outperformed the initial target.

A series of techniques in sand control, reservoir protection, perforation, etc. have been employed in the development of LD 10-1 field.

Mr. Liu Jian, Senior Vice President of the Company commented, "We are excited by the LD 10-1-A11, which sets a new record of our independent daily production per well in Bohai Bay. Meanwhile, this outperformance clearly demonstrates our execution capability to implement development projects."

LD 10-1 was discovered by CNOOC limited independently in 2002 and came on stream ahead of schedule in early 2005. At the end of 2004, 92.7 million barrels of oil reserves have been booked in LD4-2/5-2/10-1. LD 4-2 and LD 5-2 are expected to commence production in 2005. The total peak production of these three fields is planned at 39,500 b/d.