Roc Oil failed to find commercial hydrocarbons at the QK11-1-1 well in Bohai Bay, offshore China, reported joint venture partner AWE Ltd.
The well was drilled to a total depth of 4377m measured depth and 3863 true vertical depth on 7 September Logging is completed and plans to abandon the exploration well are underway.
AWE reported in August that the first exploration block, QK11-1-1, was to test a low risk, material size prospect that is covered by recently acquired 3D seismic survey data. The block is said to have the benefit of low drill and development costs.
QK11-1-1 is located in Block 09/05, approximately 10km southeast of Tanggu, the largest port in China. The block covers an area of 335sq km in approximately 5m to 10m water depth. Drilling began on 14 August using the CPOE Rig 33 approximately 15km north of Roc’s Zhao Dong Block.
AWE reported that the well encountered the prognosed objectives of Ming, Guantao and Dongying, but did not confirm the presence of commercial hydrocarbons.
The 09/05 contract contains a second commitment exploration well that is expected to be drilled in 2015. It will target a different structural trend in the block.
ROC operates Block 09/05 and holds a 60% interest with partner AWE (40%).
AWE recently acquired the 40% interest of the block in August when a farm-in agreement with Roc was signed. Under the terms, AWE is paying Roc US$2 million for past costs, 60% for QK11-1-1 and 54% of the second exploration well. Should drilling costs exceed the initial gross estimate of $14.7 million per well, AWE will then contribute at a 40% working interest.
In addition to Roc and AWE, CNOOC, Brightoil Petroleum and partners have interest in Bohai Bay.
In August, Brightoil finalized a $1.046 billion acquisition of two offshore oil-producing blocks from Anadarko China: the 124sq km contract area 04/36 and the 88sq km unit area 05/36, both operated by CNOOC China.
Brightoil acquired 40.09% interest in 04/36, and is now partnered with CNOOC (51%) and Singapore Petroleum Co. (9%). In 05/36, Brightoil acquired 29.18% interest with partners CNOOC (51%), Newfield Exploration Co. (12%), and Singapore Petroleum (8%).
Image of Block 09/05 from AWE