China Operations Summary
ROC’s first contact with China’s oil industry was in 1998 when the Company exported oil it was producing in Mongolia into China by rail. The oil was sold to Shijiazhuang Refinery (subsidiary of Sinopec). In 2002 ROC sold the Mongolian acreage to Dongsheng Oil Company, a subsidiary of Sinopec.
In 2002, ROC farmed into Beibu Gulf Block 22/12 through a 25% equity in the offshore block. Within the month ROC drilled its first well and discovered oil. ROC acquired operatorship and increased its equity to 40%.
In 2004, ROC drilled an appraisal well on the Wei 12-8-3 oil field which successfully confirmed the presence of oil but also indicated that the oil was viscous.
In April/May 2006, the drilling of the Wei 6-12S-1 exploration well made a potentially significant oil discovery. Two appraisal wells were drilled on the field.
On 1 July 2006, ROC acquired a 24.5% operated interest in the Zhao Dong Block in the Bohai Bay, offshore China, via the purchase of 100% of the shares of Apache China Corporation LDC. Within the block there are two producing fields.
