Roc Oil (Bohai) Company, a wholly owned subsidiary of ROC, announces the successful completion of the 162km2 3D ocean bottom cable (OBC) seismic campaign in the 09/05 exploration licence, Bohai Bay, offshore China.
The programme was completed ahead of schedule, within budget and without incident. Data quality is good and seismic processing has started and will assist the team in high grading the prospect inventory, in preparation for start of early exploration drilling.
ROC has finalised a farmout option agreement on the 09/05 licence with Horizon Oil Limited (HZN).
Under the terms of the agreement HZN will pay 40% of all petroleum exploration costs incurred until the exercise or lapse of the option, which entitles HZN the right to farm into a 40% working interest in Block 09/05. In advance of spudding the first exploration well HZN can exercise the option to acquire the 40% interest by paying a 2 for 1 promote on two exploration wells. The transfer of interest to HZN will be subject to CNOOC’s approval.
Chief Executive Officer Alan Linn said:
“The team has been extremely efficient in completing a high quality 3D seismic survey significantly ahead of schedule and we are looking forwards to progressing our prospect evaluation and moving into well planning. ROC constantly looks for a balance of value growth and risk management in our business and the farmout option with Horizon, whom we already partner in the recently successful Beibu fields’ development, is an efficient way to optimise the value of our current China exploration portfolio.”
Block 09/05 has an area of 335km2 and is 15km north and on trend with ROC’s current operating asset in Bohai Bay, the Zhao Dong field. The 3D seismic acquisition was completed on 12 September 2013 and covered an area of 162km2
The data is currently being processed it is anticipated that survey results will be completed in early 2014. ROC was awarded the exploration block by China National Offshore Oil Corporation (CNOOC) in May 2012 and signed a Petroleum Contract shortly thereafter. Upon a successful discovery, CNOOC has the right to participate in up to 51% of any development.
Press Release, October 10, 2013