The west Hercules deepwater drilling rig drilled the Liuhua 29-1-2 well to a total vertical depth of 2,930mt below sea level. The well was drilled and tested in a water depth of 765mt on the Liuhua 29-1 field, which was discovered in the south China sea.

The Liuhua 29-1 field is the company’s third deepwater gas discovery in block 29/26 in the south China sea. The field is located about 43km northeast of the Liwan 3-1 field, the company’s discovery in block 29/26 and approximately 20km northeast of the Liuhua 34-2 field.

Husky said that it plans for the development of Liwan 3-1 and Liuhua 34-2 fields, which are to be submitted to regulatory authorities later in 2010. Furthermore, the plan of development of Liuhua 29-1 will be submitted when ready and will incorporate the results of the additional appraisal drilling that will be required.

The first two fields in block 29/26 – namely Liwan 3-1 and Liuhua 34-2 fields will be developed in parallel, with the gas production targeted in 2013. Gas production from the Liuhua 29-1 field will share common gas processing and transportation infrastructure.

The west Hercules drilling rig is currently commencing the drilling of another exploration well – Liwan 5-2-1 in block 29/26 prior to returning to Liuhua 29-1 to drill a second appraisal well, later this year.

Husky holds a 40% net working interest in a production block at the Wenchang oil field and 100% working interest in two other exploration blocks offshore China. Under the petroleum contract, CNOOC has the right to participate in any field development projects for up to 51% working interest.

John Lau, president and CEO of Husky Energy, said: “This first appraisal well tested natural gas at an equipment restricted rate of 55 million cubic feet per day with indications that the well’s future deliverability could be 60 – 70 million cubic feet per day.

“The results from this well demonstrate the quality of the Liuhua reservoir. Further appraisal drilling planned for later this year will be required, to increase our understanding of the recoverable resource and provide us with the necessary reservoir characterization and data to prepare a plan of development for the field.”