The Wei 6-12-1 exploration well, which is located in Block 22/12, will be drilled to a depth of 1750 metres targeting the Weizhou formation in the interval 1400-1750m. Drilling will take place under the terms of the turnkey contract with the Chinese National Offshore Oil Company (CNOOC) using the Nanhai IV jack-up rig, which should be in place by mid-February.

Bligh Oil estimates the mean potential reserves at more than 100 million barrels of oil. The company will retain a 40 per cent interest with the remainder being farmed out to other Australian participants in the block. The company will also operate the drilling of the well, which is expected to cost in the vicinity of $US4 million.