Independent oil and gas exploration and production company, Dalian Exploration, has formally announced that it has struck oil at the #12C well at its Bohai Bay oilfield in northern China.

According to readings collated by the company’s engineers at the site, during 6 days of testing, the #12C well produced a maximum flow rate of 950 barrels a day and a consistent, sustainable rate of 350 barrels per day

“The well yielded light sweet crude with a high API gravity of 39.3 and samples have been taken for further lab analysis,” said a company spokesman.

The well design utilized the latest drilling and completion technologies culminating in 500 meter horizontal completion 400 meters below the surface.

Dalian Exploration says it believes that, with a gas drive installed, the well could flow oil at a sustainable 2,000 barrels per day.

“Such is the extent of our excitement and optimism at the results of this test, we believe that full field development at Bohai Bay could yield in the region of 40,000 barrels per day at its peak and, in doing so, add a particularly strong cash flow stream to our finances,” said a Dalian Exploration lead engineer.

The company says it is pressing on with further test planning at a number of other wells at the Bohai oilfield and says it will continue to provide scheduling information via regular press releases.

Industry commentators recently speculated that Dalian Exploration may be preparing for a rights issue to raise additional capital for well expansion at Bohai but no confirmations have been forthcoming.

About Dalian Exploration:
Dalian Exploration is a privately owned Oil & Gas exploration firm with key operations throughout North Eastern China. The company is strategically positioned to capitalise on onshore and offshore exploration opportunities that are presented by global demand for energy based natural resources.

In pursuit of continued growth, the company's commitment to increasing shareholder value is driven by an experienced management team that seeks to build upon existing competitive advantages and to strengthen operational competencies.

For further information on how you can benefit by becoming part of the Dalian Exploration growth story, contact their Investor Relations department to discover what is means to be a shareholder in the company.

Contact Dalian Exploration:
186 Zhongchang Street
Shahekou District
Dalian, Liaoning
China, 116001
Tel: +8675788700317
Fax: +867 5788 700330
[email protected]
http://www.dalianexploration.com