CNOOC confirms Bohai Bay discovery

CNOOC Ltd., the Hong Kong-based 70.6% subsidiary of China National Offshore Oil Corp., successfully drilled two appraisal wells, BZ 34-1-5 and BZ 34-1-4, on its BZ 34-1 discovery in Bohai Bay off China.

April 5, 2004

By OGJ editors

HOUSTON, Apr. 5 -- CNOOC Ltd., the Hong Kong-based 70.6% subsidiary of China National Offshore Oil Corp., successfully drilled two appraisal wells, BZ 34-1-5 and BZ 34-1-4, on its BZ 34-1 discovery in Bohai Bay off China.

BZ 34-1-5 was drilled in 21 m of water and flowed nearly 400 b/d of 31-33 I ° API oil on a 7.14mm choke during the first drill stem test. The well also produced 5.37 MMcfd of natural gas on a 9.53 mm choke during a second drill stem test, officials said.

The BZ 34-1-4, drilled on the same discovery, encountered gas pay zones of 16 m and oil zones of 38 m, officials said. CNOOC is operator with a 100% interest in the discovery.

"It's a good start for this year's Bohai Bay exploration program," said Zhang Guohua, senior vice-president at CNOOC.

CNOOC Ltd. is dominant producer of crude oil and natural gas offshore China and one of the largest independent exploration and production companies in the world.