Horizon Oil claims second oil discovery off China
THE ROADHOUSE BOWSER: Horizon Oil (ASX: HZN) informed the market the drilling of the second of a two exploration well program in the Beibu Gulf Block 22/12 has been completed.
The WZ 12-10-2 well is located is located in 36 metres of water 1.6 kilometres east northeast of the existing WZ 12-8W platform and about 3.2km west southwest of the recently drilled WZ 12-10-1 oil discovery.
The well spudded on 3 October 2014 with the COSL Rig HYSY 935.
Horizon said the current exploration well, WZ 12-10-2, discovered high porosity net oil pay of approximately 11m true vertical depth in the Jiaowei T42 formation.
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Wireline evaluation logging programs, including pressure measurements, fluid sampling, formation imaging and sidewall coring, have been run and confirmed the oil pay in the Jiaowei T42 reservoir has favourable reservoir porosities of about 31 per cent and oil gravity of approximately 29 deg API.
Horizon said further work will now be undertaken to evaluate both the extent of the structure and reserves, and assess the most effective route for integrating these additional oil resources into the existing Beibu project.
“This is a very pleasing result, being the second discovery in a two well exploration campaign,” Horizon Oil chief executive officer Brent Emmett said in the company’s announcement to the Australian Securities Exchange.
“Horizon Oil’s view is that it is likely that the WZ 12-10-2 oil accumulation will be able to be developed from the WZ 12-8W platform development facilities, thereby taking advantage of the existing development facilities.
“In the same way, the WZ 12-10-1 discovery will support the future integration of the proposed WZ 12-8-E development.
“As a result, we expect the new discoveries to deliver favourable economics and to extend the life of the Beibu Gulf project.
“Horizon Oil would like to acknowledge that these discoveries are the result of very productive collaboration and cooperation between our joint venture and CNOOC-Zhanjiang.
“The positive results we have been able to report during this program are a direct result of that successful team work.”
Email: exploration@horizonoil.com.au
Website: www.horizonoil.com.au