CNOOC Hits 10 New Discoveries Offshore China

CNOOC Limited says the company has made 10 new oil and gas discoveries offshore China. Within those 10 discoveries, 9 of them were founded independently.

In the first half of 2007, benefiting from in-depth exploration research and intensive offshore exploration operations, the company made 6 independent oil and gas discoveries: Bozhong28-2 East, Bozhong26-3, Jinzhou25-1, Weizhou11-7, Weizhou11-8, and Weizhou6-1South. Besides, through cooperation with other partner another discovery, Kenli20-1, was obtained.

Encouraged by the exploration results, CNOOC Ltd. has enhanced its exploration in new areas for the second half of the year. Up to now, this move has delivered promising results: there are 3 more independent discoveries founded, PanYu10-2, Panyu11-5 and Weizhou11-2. During the drilling operation, two discovery wells, Panyu10-2-1 and Weizhou11-2-1, encountered oil pay zones of accumulative 57 meters and 64 meters respectively, another discovery well Panyu11-5-1 hit 13-meter thick oil-bearing formations.

In addition, the Company has made successful appraisals on 7 oil and gas structures: Bozhong28-2 East, Bozhong26-3, Jinxian1-1, Jinzhou25-1, Weizhou11-7, Weizhou11-8 and Weizhou6-8. Kenli20-1, under PSC cooperation, has also been successfully evaluated. The evaluation result has shown Jinzhou25-1, Bozhong26-3 and Weizhou11-7 are likely to be built into mid to large oil and gas fields in the future. The recent discovery Weizhou11-2 also contains big potential.

For 2007, productive exploration activities were carried out over Bohai Bay with 5 oil and gas discoveries. Mr. Zhu Weilin, Executive Vice President of the Company and General Manager of Exploration Department commented, "Bohai Bay is the most important area for the Company's oil and gas exploration and production. Up to now, the exploration work commitment and the increase in the reserves for this area have again reached a record high. I believe the great potential of resources will embrave the Company to further its explorations activities."

Mr. Zhou Shouwei, President of the Company comments: "The superior exploration position is the essence for the independent oil and gas E&P Company. As for the traditions, the Company has kept on injecting plenty of human resources and facilities and thus the investment in exploration has increased significantly in year 2007. Meanwhile, the 10 new discoveries have brought a satisfactory return to the Company. In the future, we will continue to steadily advance the exploration activities, to build a strong fundamental reserve base for the Company's long term growth."