Petsec to develop Beibu Gulf project

Offshore staff

SYDNEY -- Petsec Energy Ltd. and partner Roc Oil Ltd. are moving ahead with front end engineering and design (FEED) studies and an overall development plan for the 6-12/ 6-12 South oil fields in block 22/12 in Beibu Gulf for submission to Chinese authorities.

The joint venture expects to make a final investment decision late in 2007 and to begin development early in 2008 of the Wei-6-12-South oil discovery, which was made in mid-2006.

A feasibility study for the development of the discovery and the adjacent 6-12 oil field was completed in 1Q 2007. Gross recoverable oil is estimated at 19-37 MMbbl in the 6-12/6-12 South area.

A drilling program of four wells plus two optional wells is scheduled to begin in 4Q 2007 to test potential of 40-60 MMbbl of oil (gross) in the area close to the 6-12 South oil discovery, Petsec says.

Petsec has 25% working interest in the block, but would be reduced to 12.25% net revenue interest should China National Offshore Oil Corporation (CNOOC) back-in for 51%. Roc Oil holds the balance.

7/19/2007