(July 10, 2006) - CNOOC Limited announced today that its wildcat Luda (LD) 6-2-1 drilled independently in Bohai Bay hit a new discovery LD 6-2.

LD 6-2-1 is located in the Liaodong Bay, with a water depth of about 30 meters. The well was drilled to a total depth of 2,395 meters.

The well was tested to flow about 620 barrels of oil and 240,000 cubic feet of gas per day via 7.14mm choke during the drill stem test.

Mr. Zhu Weilin, Vice President of the Company and General Manager of the Exploration   Department   commented,   "We’re   optimistic about our exploration in Bohai Bay in 2006. Several new discoveries have been made up to now, including LD 6-2, BZ29-4 and BZ28-2S. These new discoveries will further enlarge our reserve base in Bohai Bay."