PRODUCTION FACILITY

Facility Name	Zhao Dong C4		Duty	Oil
Operator	Roc Oil		Current Status	Producing since 2009
Host Type	Fixed Platform		Water Depth	n/a
Dev.Cost	n/a		Region	China
Location

OIL & GAS FIELD

Field Name	C		Discovery Date
Block	Zhao Dong		Reserve Type	Oil
Current Status	Producing - Under Dev.		Production Start
Water Depth	n/a

Field Name	D		Discovery Date
Block	Zhao Dong		Reserve Type	Oil
Current Status	Under Development		Production Start
Water Depth	n/a

Field Name	Zhao Dong		Discovery Date
Block	Zhao Dong		Reserve Type	Oil
Current Status	Producing		Production Start	Jan 2009
Water Depth	n/a

Description

Zhao Dong is a stacked reservoir system with 27 stratigraphic levels known to contain oil; 16 of which are currently productive. Oil production commenced in 2003 and ROC acquired a 24.5% interest in the block in 2006. Recent (2009) drilling operations were completed ahead of plan, with the drilling team delivering outstanding results: the programme was completed with a 25% cost improvement in the overall programme versus budget, and an average well was completed in under 12 days, a 40% efficiency improvement versus 2008. Also in 2009, ROC successfully commissioned the second processing platform (‘OPB’), the second drilling platform (‘ODB’) and a high pressure flare structure. OPB was the last of five structures installed as part of the development plans for the Zhao Dong oil fields and its commissioning represented the completion of facility development activities that started in early 2007. Combined total oil production from the C & D and C4 oil fields was 7.2 MMBBL in 2009, the highest in three years despite the worst winter weather conditions experienced in the fields since production commenced in 2003. Higher than expected production levels were due to the better than forecast performance from wells drilled in 2009, supplemented by the previously shut-in high water cut wells, which were brought back into production after OPB was commissioned. ROC initiated a continuous improvement process and established action teams to enhance teamwork, operating efficiency and cost effectiveness. ROC also intends to leverage on the Company’s Zhao Dong experience and infrastructure to support a long term growth plan in China. The C4 field Unit Development Plan ("UDP") included construction of new facilities and will include the drilling of 24 wells (15 oil producers and 9 water injectors) over 5 years from 2007. Four producers were drilled in 2008 and three producers were drilled in 2010. The new pipline terminal and pipeline connections were successfully commissioned in October 2008, following which first production from the C4 Field and the ERA began. Current ownership of the block includes its operator, ROC Oil Company, PetroChina Company and Sinochem(New XCL-China LLC).

Activities

ROC Pumps Oil at Zhanghai Block offshore China

Date: Aug. 2011 Type: Development Activity

Roc Oil has commenced production from the first appraisal well drilled in the new Zhanghai block. Specifically, the ZD CP2N-H1 appraisal well intersected 1,017 feet (310 meters) of horizontal reservoir section. The well was completed, and production commenced, through existing C4 facilities, at an initial rate of 3,546 bopd. Roc will now drill a second appraisal well during 2012. Additionally, PetroChina exercised its rights under the PSC to assist with a 51% interest in the blocks. The interests in the two, new additional, blocks are PetroChina 51%, Roc 39.2% and Sinochem 9.8%. The Zhao Dong Block is located in Bohai Bay, offshore China.

Roc Oil Ramps Up Production in Zhao Dong Block

Date: Jun. 2010 Type: Status Update

The Zhao Dong Block's production rate is averaging more than 24,000 bopd and total year-to-date production for May 31 was approximately 2.5 MMbbl. Despite the production downtime caused by severe winter weather and sea-ice conditions in the Bohai Bay during 1Q10, production is still expected to meet the budget target of more than 7 MMBBL for the year. The 2010 development-drilling program has commenced, with six of the planned 24 wells completed and online, adding 5,000 bopd to the block's current production. Additionally, preparations are in place for the construction of the gas pipeline from Zhao Dong to shore. Commencement of gas sales from the block is planned for 4Q10. Roc Oil serves as the operator of the block, holding a 24.5% interest; PetroChina Company holds 51%; and New XCL-China holds the remaining 24.5% interest.

Roc Oil Turns on Taps at First Wells in Offshore Zhao Dong Block

Date: Apr. 2009 Type: Production Start

Roc Oil commenced production from the first wells in the Zhao Dong Block, Bohai Bay, offshore China. Total gross production from the Zhao Dong Block is currently approximately 21,500 bopd. The C-51 well in the extended reach area of the C and D oil fields commenced production on March 20 and is currently producing at a rate of approximately 1,000 bopd. A second production well, C-52, commenced production on March 29 and is currently producing at just over 2,000 bopd. The third production well, D-43, was turned over to operations on April 3. Following completion of D-43, one further production well will be drilled and two well workovers are planned before the 2009 drilling operations are completed.

Status History
C
Producing - Under Dev. - Mar 20, 2009 to -
D
Under Development - 2009 to -
Zhao Dong
Producing - 2009 to -
Zhao Dong C4
Producing - 2009 to -