Husky finds oil offshore Canada, China

Husky Energy has made two oil discoveries, one offshore Newfoundland and the other in the South China Sea.

Offshore staff

CALGARY, CanadaHusky Energy has made two oil discoveries, one offshore Newfoundland and the other in the South China Sea.

The White Rose A-24 exploratory well, drilled 10 km (6.2 mi) north of theSeaRoseFPSO, encountered more than 85 m (279 ft) of oil-bearing sandstone and remains under evaluation.

Husky has a 68.875% operated interest in the well, in partnership with Suncor Energy and Nalcor Energy Oil and Gas.

The other discovery was on block 15/33 in 80 m (262 ft) water depth, 160 km (99.4 mi) southeast of Hong Kong. Early results confirmed four oil-bearing zones with a combined thickness of about 70 m (229 ft).

Further testing is under way to assess a potential commercial development. Following completion of the test phase, a second exploration well is due to target a separate structure on the block.

In addition, Husky plans to drill two exploration wells on the nearby block 16/25 later this year. In the event of a commercial discovery in either case,CNOOC can back in with an interest of up to 51%, with Husky allocated exploration cost recovery from production.

The two companies have also signed production-sharing contracts for two blocks 22/11 in the Beibu Gulf area of the South China Sea.

Block 22/11 covers 1,663 sq km (642 sq mi) in a water depth of 40-80 m (131-262 ft), while block 23/07 covers extends for 1,210 sq km (467 sq mi) in 20-40 m (65.6-131 ft) of water.

Here too Husky will act as operator during the exploration period.

05/18/2018

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