CNOOC Boosts Q1 Production

CNOOC Limited on Thursday said that its net production 473,280 BOE per day for the first quarter reflects a 5.1% increase year-on-year. In the period, the Company's unaudited revenue was RMB 14,850 million.

For the first quarter of 2007, the Company produced 378,734 barrels per day of crude oil and liquids, which were more or less the same as those in the first quarter of last year. Due to strong growth of gas production, the total net production continued to increase steadily, achieving a YOY increase of 5.1%. In the period, net gas production increased by 41.1% YOY to 550 million cubic feet per day, which was mainly attributable to the production from North West Shelf Project (NWS Project) in Australia and Southeast Sumatra (SES) Gas Project in Indonesia.

In the first quarter, the Company's overseas oil and gas productions rose substantially by 32.4 % to 25,318 barrels and 82.4% to 177 million cubic feet, respectively.

Affected by downward fluctuation of oil price, the Company's total unaudited revenue decreased by 10.9 % YOY to RMB 14,851 million for the first quarter of 2007. Our average realized oil and gas price were US$52.45 per barrel and US$3.19 per thousand cubic feet respectively.

In the period, the Company's capital expenditure increased 70.3% to RMB 6,333.6 million, as a result of intensive exploration and development activities.

The Company and its partners made two new discoveries offshore China, BZ 28-2 E and KL 20-1, and completed two appraisals successfully. In addition, we also acquired 4,721 kilometers of 2D and 1,013 square kilometers of 3D seismic during the first quarter of 2007.

Mr. Fu Chengyu, Chairman and Chief Executive Officer of the Company commented, "In the period, the Company's production increases steadily and all our operations proceed on schedule. Significant growth was achieved in overseas oil and gas production. Moreover, I am pleased to see a strong growth in our gas production in Q1, which marks the company's improved capability in producing and supplying clean energy."

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