China National Offshore Oil Company Limited (CNOOC Ltd.) announced Friday it discovered a new natural gas reserve in Bohai Bay capable of producing 11.7 million cubic feet of gas per day.

"The discovery marks a breakthrough in the exploration in lithologic traps, "said Zhu Weilin, vice president of the company and general manager of its exploration department.

"The new exploration area will be of strategic significance to the company's reserve growth," he said.

The Jinzhou (JZ) 31-6-1 well was drilled on Structure JZ 31-6, to a total depth of 2,305 meters, in the sea area with an average water depth of 28 meters.

Zhu said the company is making appraisal of the Structure JZ 31-6 to determine its reserve scale and commercial value.

Incorporated in Hong Kong, CNOOC Ltd. is a 70.64 percent held subsidiary of the China National Offshore Oil Corporation (CNOOC), China's largest offshore oil and gas producer.

As the third largest oil producer of China, CNOOC produced 81.7 million barrel oil equivalent in the first half, up 7.4 percent from the same period of last year.

Source: Xinhua