Horizon Oil Limited has announced that its A9H infill well, drilled at the WZ12-8 Mid field in Block 22/12 within the Beibu Gulf in the People’s Republic of China, has been successfully completed and is now producing. The well was drilled from the remaining slot on the WZ12-8W wellhead platform, primarily targeting oil from the U4 reservoir, which is already being produced by adjacent wells. In an unexpected development, the drilling also intersected 19 meters of horizontal reservoir oil from the shallower U1 layer, marking a new production opportunity for the company. The A9H well was completed with an Electric Submersible Pump and specialized downhole equipment designed to facilitate production from both the U4 and U1 reservoirs. Initial production tests on the U1 reservoir on 8 June registered a gross flow rate of 372 barrels of oil per day, translating to a net production of 100 barrels per day for Horizon Oil Limited. The U1 reservoir demonstrated a high bottomhole flowing pressure of 893 psi, suggesting potential for increased oil rates once further development and evaluation of the water-cut are completed. Following these tests, production from the established U4 reservoir will commence. Horizon Oil Limited is on track to book reserves as of 30 June 2025, maintaining its pre-drill estimate of 0.4 million barrels gross, with a net reserve of 0.1 million barrels. The CEO, Richard Beament, highlighted the significance of the A9H well in not only capturing additional production opportunities in what is already a productive area but also in uncovering a bonus reservoir that could enhance the overall recovery rates of the project. The venture is carried out in partnership with other industry players, where the major stakeholder is CNOOC, holding a 51.00% interest, followed by Horizon Oil Limited (Beibu) Ltd with 26.95%, Roc Oil with 19.60%, and Oil Australia Pty Ltd holding 2.45%. The news brings a mix of bullish and bearish sentiment for the market. On the positive side, the successful production commencement from a high-pressure reservoir and the unexpected discovery of additional oil in the U1 layer indicate promising incremental production potential, supporting the company’s growth prospects. Moreover, the planned integration of production from both reservoirs could lead to enhanced overall recovery from the field. Conversely, some caution prevails due to the initial net production rate being modest and the possibility of water management challenges, as indicated by the need for further water-cut evaluations. Traders should remain cognizant of these technical indicators as Horizon Oil Limited progresses with further field development.