Husky makes third discovery in offshore China block 29/26

Husky Energy has made a third gas discovery on block 29/26 in the South China Sea.

Offshore staff

CALGARY, Canada -- Husky Energy has made a third gas discovery on block 29/26 in the South China Sea. Exploration well Liuhua 29-1 encountered a 145-m (476-ft) gross gas column with a gas charged reservoir and an oil zone in a deeper reservoir. The well tested natural gas at an equipment restricted rate of 57 MMcf/d, future deliverability could exceed 90 MMcf/d, the company says.

Front end engineering design (FEED) for the Liwan 3-1 deepwater project is complete. Husky expects to submit the Plan of Development to the regulatory authorities in the coming months. The Liwan 3-1 field and the Liuhua 34-2 field will be developed in parallel, with first gas production from both fields targeted for 2013. The new Liuhua 29-1 field, which will be appraised later this year, will use the Liwan field infrastructure, the company says.

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

“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 for the block,” says John C.S. Lau, president and CEO of Husky Energy.

02/09/2010

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