Core Viewpoint - The company, QianNeng HengXin, has successfully discovered the Weizhou 5-3 oil field in the southern part of the 22/04 block using WEFOX dual-focus imaging technology, with production set to commence in June 2025 [1] Group 1: Exploration and Discovery - The company has deployed the WZ5-3N-1 exploratory well to expand the oil field to the north and confirm the oil-bearing properties and reserve scale of the Weizhou 5-3N structure [1] - The drilling of the WZ5-3N-1 well has been completed, achieving significant breakthroughs in both the Changliu sandstone and the Carboniferous carbonate rock formations [1] Group 2: Findings and Implications - The well encountered sandstone oil layers in the Changliu formation, with recorded oil traces and oil stains, providing a basis for the overall evaluation and determination of reserves in the Changliu sandstone oil reservoir [1] - In the Carboniferous carbonate rock formation, drilling reached a depth of 1,305.60 meters, revealing fluorescence and oil stains, along with the return of over 10 cubic meters of viscous oil, indicating the development of fracture-cave reservoirs in the Carboniferous [1]

Core Viewpoint - The successful drilling of QK18-9-6 well and its side-drilling QK18-9-6Sa has confirmed the distribution and accumulation patterns of oil and gas in the Ordovician reservoir, providing significant guidance for future exploration and development plans [1][2] Group 1: Drilling Operations - The QK18-9-6 well commenced drilling in early July 2025, reaching a total depth of 3,780 meters, with recorded oil and gas shows over 267.34 meters across 34 layers, including 12 meters of oil shows in 2 layers and 255.34 meters of fluorescence in 32 layers [1] - The side-drilling QK18-9-6Sa was successfully completed with a total depth of 4,430 meters (vertical depth of 3,533.5 meters), showing oil and gas over 56 meters across 10 layers, including 12 meters of oil shows in 2 layers and 44 meters of fluorescence in 8 layers [1] - The drilling operations have confirmed the thickness of the Ordovician carbonate rock weathering crust at 268 meters and the comprehensive logging interpretation of the reservoir at 64.6 meters across 22 layers [1] Group 2: Financial Implications - All expenditures related to the drilling preparation, drilling, and supporting service contracts for QK18-9-6 well will be temporarily capitalized, having no impact on the company's operating performance for the year 2025 [2] - According to the oil contract, exploration costs incurred in the contract area will be recoverable through the production of crude oil once commercial production begins, calculated based on a determined crude oil price [2] - If no oil or gas fields are discovered during the contract period, the exploration costs will be considered a loss for the company [2]