south china drilling- next week

Finally commencing next week.

HZN, ROC., both have interests in this South China oil project. Oil has already been discovered in the area and would be very surprised if this is any different. In fact, Id say it looks bloody great in my biased opinion! Far is also in the area and has moved well.

I like HZN's leverage in this deal. Opinions?

Following has been copied from ROC Activity Update report off ASX

BLOCK 22/12, BEIBU GULF, OFFSHORE CHINA (ROC: 40% & Operator)

The latest drilling rig schedule provided to ROC suggests that the first well in the multi-well drilling
programme is now likely to commence during the second week of March, subject to a timely release
of the rig from its current operation.

As stated in previous releases to ASX, the first well in the programme, the Wei 12-7-1 exploration
well, will take about ten days to test a prospect with the potential to contain several tens of millions of
barrels of recoverable reserves.

Wei 12-7-1 will be followed immediately by another ten day well, Wei 12-8-3, an appraisal well of the
Wei 12-8 oil accumulation which is estimated to have the potential to contain recoverable reserves of
between 20 and 30 MMBO, subject to successful appraisal.

Subject to the results of the first two wells, the Block 22/12 Joint Venture has made provision to drill
up to three more back-to-back wells as part of the current drilling programme. In order to drill the
fourth and fifth wells in this programme, the results of the first two or three wells would have to be
very compelling.

The Block 22/12 Joint Venture consists of:
Roc Oil (China) Company 40% and Operator
Horizon Oil NL 30%
Petsec Energy Limited 25%
Oil Australia Pty Limited * 5%

* a wholly owned subsidiary of First Australian Resources of First

Please note that in the event of a commercial development within Block 22/12 the interests held by
the current joint venturers will reduce on a pro-rata basis by up to 51%, if the China National Offshore
Oil Corporation (“CNOOC”) exercises its right to participate for up to a 51% equity level in the
development.