CALGARY, Alberta -- Husky Oil China is encouraged by results from its first appraisal well at the Liuhua 29-1 gas discovery in the South China Sea.
TheWest Hercules drilled the Liuhua 29-1-2 well on block 29/26 to a TVD of 2,930 m (9,613 ft), in a water depth of 765 m (2,510 ft).
According to Husky, the well tested natural gas at an equipment-restricted rate of 55 MMcf/d, with indications of future deliverability of up to 60–70 MMcf/d.
The company plans further appraisal drilling later this year to improve its understanding of the recoverable resource, and to obtain reservoir characterization and data for a field development plan.
Liuhua 29-1, discovered in January, is Husky’s third deepwater gas discovery in block 29/26. The location is around 43 km (26.7 mi) northeast of the Liwan 3-1 field, and 20 km (12.4 mi) northeast of the Liuhua 34-2 field.
Husky expects to submit development plans for these two fields to Chinese regulatory authorities later this year. They will be developed in parallel, with first gas targeted in 2013. Gas produced from Liuhua 29-1 will also share common gas processing and transportation infrastructure.
TheWest Hercules is preparing to drill another exploration well in the block, Liwan 5-2-1, before returning to Liuhua 29-1 to drill a second appraisal well later in the year.