Preliminary interpretation of wireline logs from the Wei 12-3-4 appraisal well in Block 22/12 in the Beibu Gulf, offshore China, confirmed that although the reservoir objective comprised good quality sands with oil shows it does not contain any significant hydrocarbons and will be plugged and abandoned as a dry hole.

The joint venture will now spend two to three months analysing the data obtained during the drilling program, particularly from the well 12-8-3. The results of this analysis will enable the partners to assess the development potential of the 12-8 East field.

“The 12-3-4 well would have added nicely to the overall oil pool if it came through and could have influenced the ultimate development decision. However, although we were surprised at the result considering it was a lower risk well, it was never to be a key driver in the final decision,” said First Australian Resources (FAR) chairman Mike Evans.

“There are a lot of big targets in the block that have yet to be drilled, so the main decision left to make before our October 1st deadline is whether to renew the permit as an exploration block or circle 12-8-3 for development.”

Preliminary interpretation of Wei 12-3-4 drill and log data had confirmed that the well encountered the top of the target Weizhou reservoir objective essentially on prognosis approximately 35 metres low to the Wei- 12-3-1 well which had a 11.5 m gross oil column with 100% net oil pay and no oil-water contact.

The joint venture comprises Horizon Oil Limited 30%, Roc Oil (China) Company 40% (Operator), Petsec Petroleum Incorporated 25% and Oil Australia Pty Limited (FAR) 5%.

All interests will be proportionately reduced if CNOOC exercises its option to participate at a level of 51%, which is considered likely in the case of field development.