Husky Oil China Makes Third Discovery In South China Sea

Published: 08-Feb-2010

Husky Oil China, a wholly owned subsidiary of Husky Energy, has made its third gas discovery on Block 29/26 in the South China Sea. The Liuhua 29-1 exploration well was drilled 43km northeast of the Liwan 3-1 gas field and 20km northeast of the LH 34-2 gas field in a water depth of 723 metres.

The well encountered a gross gas column of 145 metres, with a significant thickness of high quality gas charged reservoir, and an oil zone was encountered in a deeper reservoir. The well tested natural gas at an equipment restricted rate of 57 million cubic feet (mmcf) per day, with indications that the future deliverability of the well could exceed 90 mmcf per day.

John Lau, president and CEO of Husky Energy, said: 'The exploration discovery at Liuhua 29-1 is the third significant gas discovery in block 29/26. The three natural gas fields; Liwan 3-1, Liuhua 34-2, and Liuhua 29-1 have confirmed the resource potential as a major gas development project in the South China Sea and supports an earlier estimation of petroleum initially in place of 4 to 6 tcf (trillion cubic feet) for the block."

The front end engineering design (FEED) for the Liwan 3-1 deepwater project has been completed. The company anticipates the Liwan 3-1 field and the Liuhua 34-2 field are to be developed in parallel with first gas production from both fields targeted to be in the 2013 timeframe. The new Liuhua 29-1 field, which will be appraised later this year, will utilize the Liwan field infrastructure.

The West Hercules deepwater drilling rig is currently preparing to spud the first delineation well on the Liuhua 34-2 discovery.

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