Horizon Oil Ltd., Sydney, completed the first phase of WZ12-8E oil field development drilling in the Beibu Gulf offshore China and has spudded another exploration probe from the production platform.
Well WZ12-8E A8 is targeting stacked Tertiary-age reservoirs and a deeper fractured basement play, aiming at an unrisked best estimate prospective resource of 5.1 million bbl, the company said.
Presence of the WZ12-8E platform means a success in WZ12-8E A8 can be brought on stream through existing infrastructure within a few days of discovery, Horizon Oil said.
Even a dry hole leaves room for a possible side-track into the Jiaowei reservoir as an additional production well on the existing field, it continued.
A further benefit is that the A8 well will provide structural and oil-water contact data points to constrain the eastern extent of the WZ12-8E Jiaowei structure prior to a potential Phase 2 development program.
Drilling of A8 is expected to take about 4 weeks to reach anticipated total depth of 1,260 m.
Horizon holds 55% exploration interest in the block while Roc Oil (operator) holds 40%. Oil Australia Pty Ltd. holds 5%.
In the event of a discovery, China National Offshore Oil Corp. (CNOOC) may elect to back in for 51% and reduce the other participating interests accordingly.