Offshore staff

SYDNEY, Australia -- Oil production from the Zhao Dong block, Bohai Bay, offshore China averaged over 30,000 b/d of oil for the second half of November, according to Roc Oil (Bohai) Co. This production rate was approximately 85% above the average rate of 16,055 b/d of oil achieved from the block during 3Q 2008, the company says.

The production increase is the result of development drilling in the Extended Reach Area (ERA) of the C and D oil fields and the C4 oil field from the new conductor pod and pipeline terminal facilities commissioned in October 2008. During October and November, oil production was established from seven wells that were drilled from the new facilities: six wells in the ERA of the C and D oOil fields (ROC interest: 24.5%); and one well in the unitized C4 oil field (ROC interest: 11.575%).

While the production rate has been significantly increased, the underlying natural decline in production at Zhao Dong will continue, the company says. The final two wells in the 2008 Zhao Dong drilling campaign are being completed and are planned to be brought into production in early December. Development drilling has been suspended for the winter period and is planned to recommence in 1Q 2009.

Construction and fabrication of OPB, the second processing platform to be located at Zhao Dong, continues and installation and commissioning is scheduled for 2Q 2009, the company says.

12/04/2008