Liuhua well confirms strong gas potential

Husky Energy has drilled a second positive appraisal well on the Liuhua 29-1 gas discovery in the South China Sea.

Offshore staff

Calgary -- Husky Energy has drilled a second positive appraisal well on the Liuhua 29-1 gas discovery in the South China Sea.

TheWest Hercules drilled the Liuhua 29-1-3 well in 682 m (2,237 ft) water depth in block 29/26, 3 km (1.8 mi) north of the discovery well, to a TVD of 2,900 m (9,514 ft) below sea level. It has since been cased for potential re-entry and use as a production well at a later date. 

“Core and log data have verified the presence of an excellent quality reservoir with approximately 60 m (197 ft) of gas pay,” says John C.S. Lau, President and CEO, Asia Pacific. “This well demonstrates an extension of the Liuhua 29-1 field to the north and based on our knowledge of the reservoir, we are confident the well is capable of high flow rates. Once the well data is integrated, additional appraisal drilling will be determined to further define the resource size and prepare the Plan of Development for the field.”

Liuhua 29-1 is Husky’s third deepwater gas find in block 29/26 – it is around 43 km (26.7 mi) northeast of Liwan 3-1, and 20 km (12.4 mi) northeast of Liuhua 34-2 field.

TheWest Hercules has since resumed development drilling at the Liwan 3-1 field. The company’s subsidiary Husky Oil China expects to submit Plans of Development for this field to regulatory authorities in the next few months.
This field and Liuhua 34-2 will be developed in parallel, with first gas production targeted for 2013. 

10/28/2010

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