Wei 12-8 EAST Project - My Take

12-8-E The Project

2 Exploration wells could add significant additional production as they target the more productive Weizhou sands.

	Well	Production: 6 Wells. 10,000 bopd peak and 4,700 bopd average 2022
1	A1	WZ 12-3 structure = 12-8-E Weihzou The Weihzou sands have a much higher for longer production rate compared to the Jiaowei sands.
2	A2H	Jaiowei - on production April 9th, 2022
3	A3H	Jaiowei
4	A4H	Jaiowei
5	A5H	Jaiowei
6	A6H	Jaiowei
7		Exploration: 2 Wells. Success Case 14.000 bopd peak and 7,700 bopd average 2022? My guesstimate: Could add more than 4,000 bopd peak, around 3,000 bopd average. Both wells are targeting the more productive Weizhou sands,
8	A7	Weihzou Production if successful, else Jiaowei water disposal
9	A8	12-8 SE Wehzou
10		Water Disposal: 1 Well
11	A7	If A7 exploration is duster, water disposal
12	A8	Possible water disposal in A7 success case, and A8 a duster.
13	A9	In the A7 and A8 success case - a nice problem to have - they could drill a water disposal well..

Project Work Program.

To minimise drilling time/costs, the top section of all/several wells are “batched drilled” prior to drilling the bottom section.

Based on the time between spud (17/3) and first production (9/4), they clearly didn’t batch drill all wells.

What I Think They Did/Are Doing (this is based on elapsed times, by deduction and induction: not always reliable).

I believe that they probably drilled the top section of A1 and A2H,

They then drilled A2H: the first well into the Jaiowei reservoir. On production April 9th.

They are now drilling the A1 Well into the Weihzou sand of the WZ 12-3 discovery.

They will then drill the top section of the remaining 4 production wells (and possibly the top section of the 2 exploration wells).

They will then drill the bottom section of the wells.

My thinking behind this approach is simple,

1. The A2H well was drilled first to start collecting very useful production information from the Jaiowei sand.

2. Program designed to maximise time to collect A2H Jaiowei production information to tweak the design of the other well.

3. The A1 well (Weihzou sand) is drilled next. If successful, it will be the most productive well, generating the most cash quicker for longer. .

4. Drill the top section of the remaining production well, and possibly the top section of the exploration wells too.

5. Drill the bottom hole of the production wells using production data from A2H to tweak well design if warranted.

6. Drill the exploration wells.

What Will We Hear in the Quarterly (late Apr 2022).

We should get more detail about the 12-8-E project. I would like to see

• A project overview/plan

• Production information from A2H as production may have stabilised by then

• If I am correct that they are currently drilling A1 (the WZ 12-3 Weihzou sand well), then A1 could be online.
  We may get production guidance. Hopefully this will be a cracker.

• It would be nice to get a bit more information about the 12-8 SE exploration well. Specifically, is there the potential to firm up other near field opportunities. 2C would also be useful information.