FOSUN Group has started production from the WZ 12 10 2 field in China’s Beibu Gulf, partner Horizon Oil told the Australian Securities Exchange.
Horizon said a pilot well drilled on the permit area in November was now producing oil at a rate of over 1,400 barrels of oil per day.
Located 500 metres north west of the WZ 12 10 2 discovery well, the WZ 12 8W A6P1 pilot well is expected to deliver incrementally to Fosun’s existing WZ 12 8W/WZ6 12 production facility and provide data to determine production and reservoir performance in the WZ 12 10 2 oil pool.
This will assist in the evaluation of a plan for the integrated development of the WZ 12 10 1, WZ 12 10 2, WZ 12 8E and WZ 12 3 oil accumulations during 2016, Horizon said.
Drilled using the HYSY931 jack-up rig, the horizontal sidetrack was directed updip towards the original discovery location and intersected 512 metres of oil bearing T42 sands from a total horizontal section of 550 metres.
China National Offshore Oil Corporation holds a 51 per cent stake in the project’s production and development rights, while Horizon holds 26.95%, Fosun’s Roc Oil holds 19.6% and Oil Australia holds 2.45%.