Better Mortgage the wife and kids. But following is an...

Better Mortgage the wife and kids. But following is an announcement from Petsec on this block from last year

PETSEC ENERGY LTD
ACN 000 602 700
1 February 2007
BEIBU GULF, CHINA OIL FIELDS DECLARED COMMERCIAL
JOINT VENTURE MOVES TOWARD DEVELOPMENT

Petsec Energy Ltd (ASX, PSA; ADR’s, PSJEY.PK)
Commenting on Tuesday’s press release by ROC Oil, operator of the Block 22/12 joint venture, Beibu Gulf, China, Petsec Chairman Mr Terry Fern said

“The announcement of commerciality of the 6.12 and 6.12 South oil discoveries and joint venture agreement to proceed towards commercial development, represents major progress in the development of the six oil field discoveries in the block and hopefully oil production by late 2008.”

The joint venture has completed the feasibility study on its Wei 6.12 and 6.12 South discoveries, concluded that the fields can be commercially developed, and recommends that development proceed.
Front End Engineering and Design (FEED) work has commenced and a Final Investment Decision (FID) is expected in the second half of 2007 which could allow production by late 2008.

Design of production facilities would allow for the expected oil accumulations in the two prospects adjacent to, and the three prospects within four kilometres of, the 6.12 South oil discovery.

Reservoir modelling indicates that the most likely oil in place and upside for the 6.12/6.12 South oil discoveries ranges from 56 to 78 million barrels of oil, and recoverable oil from 19 to 27 million barrels of oil. This represents 4.75 to 6.75 million barrels of oil to Petsec Energy or 2.33 to 3.31 million barrels should China National Offshore Oil Company (CNOOC) back-in for 51%.

It is anticipated that the Slither and Footwall prospects adjacent to the 6.12 South discovery would also be productive and these could increase oil in place to 83 to 108 million barrels of oil, adding a further 10 million barrels of recoverable oil for a total recovery of 29 to 37 million barrels of oil in the 6.12/6.12 South structure. This represents 7.25 to 9.25 million barrels to Petsec Energy or 3.55 to 4.53 million barrels should CNOOC backin for 51%.

The remaining three prospects within four kilometres of the 6.12 South oil discovery, have a mapped potential (P 50) of 150 million barrels of oil in place and it is hoped that these will be drilled this year. Initial production for 6.12/6.12 South is indicated at 10,000 to 15,000 barrels of oil per day and potentially a ten year life, while facilities would be sized at possibly twice that rate to accommodate further discoveries in the nearby prospects.

Design of the facilities would allow for expansion to accommodate potential development of the four other oil field discoveries in the Block to the South which have an estimated (P 50) oil in place of some 240 million barrels of oil which is heavier and more viscous than the 6.12 area oil.

Petsec Energy Ltd is an independent oil and gas exploration and production company listed on the Australian Stock Exchange. Its focus of operations is on gas in the shallow waters of the Gulf of Mexico and onshore Louisiana Gulf Coast region of the USA, and on oil in the shallow waters of the Beibu Gulf off the south coast of China.