CNOOC Ltd. (NYSE: CEO) has struck oil in the Pearl River Mouth Basin of the South China Sea, the company said in a news release. The company deemed the find “a mid-sized discovery.”

The Liuhua 20-2 structure is located in Northern Slope Belt of Baiyun Sag in the eastern part of the South China Sea, with an average water depth of about 390 m. The discovery well LH20-2-1 was drilled and completed at a depth of about 2,970 m and encountered oil pay zones with a total thickness of 35.2 m, CNOOC said in the release. The oil production of the well tested around 8,000 barrels per day and the crude oil density is about 0.75.

CNOOC said the successful exploration of Liuhua 20-2 has further proved the exploration potential of Baiyun Sag in the Pearl River Mouth Basin. The company expects the Baiyun Sag to become the new reserves growth area of deepwater exploration of crude oil in South China Sea.