Development Plans Underway for Wei-6-12 South Discovery

Petsec Energy, one of the joint venture partners in the Beibu Gulf Wei-6-12 South oil discovery says that the joint venture is proceeding with front end engineering and design studies (FEED) and an overall development plan (ODP) for the 6-12/ 6-12 South oil fields for submission to Chinese authorities.

The joint venture, which is led by Roc Oil, expects to make a final investment decision late in 2007 and commence development early in 2008.

The 6-12 South oil discovery was made in mid 2006. A feasibility study for the development of this discovery and the adjacent 6-12 oil field was completed in the first quarter of 2007. Gross recoverable oil is estimated at 19 to 37 million barrels of oil in the 6-12/6-12 South area.

A drilling program of four firm wells plus two optional wells is scheduled to commence in the fourth quarter of 2007 to test potential of 40 to 60 million barrels of oil (gross) in the area close to the 6-12 South oil discovery.