ROC Oil has commenced oil production from the first appraisal well drilled in the new Zhanghai Block in the Bohai Bay offshore China.
The appraisal well (ZD CP2N-H-1) commenced drilling from the Zhao Dong C4 platform on July 15 and intersected 310 meters of horizontal reservoir section. The well was completed and production through existing C4 facilities has commenced at an initial rate of 3,546 barrels of oil a day.
ROC is now planning to drill a second appraisal well (ROC 80% cost obligation on dry hole basis) during 2012.
"Extension of the Zhao Dong block provides an opportunity to incrementally develop a number of existing discoveries through existing Zhao Dong facilities in parallel with ongoing development drilling activities,” said ROC CEO Alan Linn. “Exploration opportunities within this acreage could also impact the future profitability and recovery life of the existing assets.
Zhanghai Block is one of two adjoining blocks added to ROC’s existing Zhao Dong Block Contract in March 2011 with the aim of commercializing previous near field discoveries in the area and encouraging further appraisal activity.
PetroChina exercised its rights under the PSC to participate with a 51% interest in the new Zhao Dong blocks on the commencement of completion activities and commercial development of the well. The interests in the two new additional blocks are now PetroChina 51%, ROC 39.2% and Sinochem 9.8%.
ROC starts oil production from Zhao Dong Block offshore China