A partnership of leading oil companies have discovered oil in four exploration wells in offshore Cambodia Block A. Oil pay logged in the wells ranged from 41 feet to 139 feet. Analysis of samples indicates the oil is 44 degree API crude.

The 6,278 square kilometer block, encompassing the Khmer Basin with water depths averaging 240 feet, was awarded to Chevron Overseas Petroleum (Cambodia) Ltd (COPCL), and its partners, in March 2002. COPCL has a 55% interest in the block and is the operator. Moeco Cambodia has a 30% interest and LG Caltex Oil Co.15%.

According to the Associated Press quoting the Cambodian National Petroleum Authority, the discovery translates to about 106 trillion to 176 trillion cubic feet of gas, and 400 million barrels of crude oil.

John Watson, president of ChevronTexaco Overseas Petroleum, said: The preliminary results of these exploration wells are promising, and they underscore the further success of our focused global exploration program. As a new exploration area for ChevronTexaco, Cambodia could offer the potential to build upon our already strong position in the Gulf of Thailand.

The five-well campaign began on October 13, 2004, with the drilling of the Pisnuka number one which reached a total depth (TD) of 11,874 feet. The second well, Sovann Phum number one spudded on November 4, 2004 (TD 12,232 feet), the third well, Sirey Sambat number one on December 8, 2004 (TD 11,712 feet), and the fourth well, Pimean Akas number one on December 27, 2004 (TD 11,660 feet).

The drilling program will conclude with one more exploration well that is expected to be completed in February 2005.