HOUSTON -- Newfield Exploration made an oil discovery on its Pearl River Mouth basin acreage in the South China Sea. The LF7-2-1 exploration well found nearly 60 ft (18 m) of net oil pay.
The well tested the first of a series of features on a structural ridge. Additional drilling is planned. A separate exploratory well drilled during the quarter, the HZ28-1-1, was not commercial.
Newfield operates the discovery with a 100% interest. Newfield's interest is subject to the Chinese National Offshore Oil Co.'s right to take a 51% interest during development.