Husky hits gas with Liwan 3-1 appraisal well

Husky Energy has hit pay with the first appraisal well on the Liwan 3-1 field in the South China Sea.

Offshore staff

CALGARY, Canada -- Husky Energy has hit pay with the first appraisal well on the Liwan 3-1 field in the South China Sea.

TheWest Hercules drilled the Liwan 3-1-2 well on a large structure with 55 sq km (21 sq mi) of mapped closure. The well, which was logged, encountered 36 m (118 ft) of net gas pay over the main reservoir zone, the company says.

The well flowed at an equipment-restricted rate of 53 MMcf/d of gas, indicating future deliverability could be in excess of 150 MMcf/d, the company says. Husky Energy is now determining the extent of the discovery and determining the flow capacity of the reservoir.

TheWest Hercules has been chartered for three years with extension options. Upon completion of this well, the rig will drill a second appraisal well before moving on to drill additional exploration wells in the area.

The FEED work for the Liwan development project is being prepared for tender and is expected to begin once results are obtained from the next appraisal well.

02/23/2009

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