Horizon is pleased to advise that, following the successful installation, hook-up and commissioning of facilities for the WZ12-8 East Project, first production has been achieved from the first development well WZ12-8E A2H. Construction and drilling activities to date have been undertaken safely within budget and on schedule.
The Project is expected to reach an average daily gross production rate of approximately 4,700 barrels of crude oil during 2022, with peak production expected to be approximately 10,000 barrels per day.
Horizon CEO, Chris Hodge commented:
“We are delighted to have reached this milestone safely and within budget and schedule. We can now look forward to the drilling of the remaining 5 production wells over the next 3 to 4 months”.
About the WZ12-8 East Project
The WZ12-8 East Project represents the first phase of a possible multi-phase development, depending on the production performance of this first phase. The initial phase will use a total of five production wells to develop the western side of the large Jiaowei reservoir and one production well from the smaller nearby Weizhou reservoir.
Further development of the Jiaowei reservoir will be considered by the joint venture following the first phase results.
The WZ12-8 East Project utilises the HYSY163 self-elevating wellhead platform which is being leased by the joint venture from the contractor CEDC. The platform is linked to the existing WZ12-8 West platform via a new pipeline and subsea power cable, with oil then exported via existing CNOOC facilities to CNOOC’s Weizhou Terminal.
The remaining development costs are to be internally funded using Horizon’s existing cash reserves and field production revenue.
Roc Oil is the current operator of the WZ12-8 East Project, with CNOOC to assume operatorship by the end of 2022.
