Horizon Oil has commenced a major infill drilling operation in Block 22/12, located in the Beibu Gulf, China, as part of its ongoing strategy to expand production from its core assets.
A drilling rig owned by China Oilfield Services Limited (COSL) has been mobilised to the WZ12-8W platform, where it will drill a single well aimed at converting contingent resources into reserves.
The results of this campaign are expected to be reflected in Horizon Oil’s reserves report as of June 30, 2025.
The new well is projected to yield an additional 400,000 barrels (bbl) of oil over its lifetime, with Horizon Oil’s net share estimated at 100,000bbl by the end of the contract term.
The incremental oil production rate is forecast at 500 barrels of oil per day (bopd) gross, translating to 125bopd net for Horizon Oil.
The company plans to finance its share of the drilling costs from existing cash reserves.
CNOOC, the operator of the drilling and completion operations, has scheduled the campaign to last approximately one month from the start of drilling.
Horizon Oil 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.”
In a related development, Horizon Oil has broadened its Southeast Asian portfolio by signing a sale and purchase agreement to acquire interests in the Sinphuhorm and Nam Phong gas fields in Thailand from ExxonMobil.
Through its subsidiary Horizon Thailand Investments, the company will gain a 7.5 per cent working interest in the Sinphuhorm gas field and a 60 per cent interest in the Nam Phong gas field.
Meanwhile, CNOOC has recently commenced production at the Wenchang 9-7 Oilfield Development Project in the western Pearl River Mouth Basin, South China Sea.
The project features a new drilling and production platform and is designed to enhance oil recovery using advanced technologies such as miscible gas flooding.
These developments underscore Horizon Oil’s commitment to production growth and resource development in the Asia-Pacific region.
