Horizon Oil advises of the commencement of a 2025 infill drilling operation in Block 22/12, Beibu Gulf, People’s Republic of China. A COSL owned drilling rig has been mobilised to the WZ12-8W platform for a one well campaign. The well was spud today. 

Recovery from this well is currently carried as contingent resources but will be reclassified as reserves in Horizon’s 30 June 2025 reserves report. This well will recover incremental oil from an existing field and is targeted as a nearby offset from existing producers. 

The one well program is forecast to recover an incremental 0.4 mmbbl gross (Horizon net 0.1 mmbbl) to the end of the contract period, with the total incremental oil rate from the well is estimated at 500 bopd gross (Horizon net 125 bopd). Horizon’s share of the forecast drilling costs will be funded from existing cash reserves. 

CNOOC is operating the drilling and completion operation, which will run for approximately 30 days from spud.

Horizon CEO, Richard Beament commented: 
“We are pleased to be targeting additional production growth from Block 22/12. This drilling operation reinforces our commitment to investing in production expansion within one of our foundation assets, and at the same time developing our substantial inventory of contingent resources.”

Block 22/12 participants: 

• CNOOC (Operator): 51.00%
• Horizon Oil (Beibu) Ltd: 26.95%
• Roc Oil: 19.60%  
• Oil Australia Pty Ltd: 2.45%

KeyFacts Energy: Horizon Oil China country profile