The well was drilled and tested in a water depth of 1,450 meters on the Liwan gas discovery which was made in 2006 in the South China Sea.
“This third appraisal well tested natural gas at an equipment restricted rate of 52 million cubic feet (mmcf) per day with indications that the well’s future deliverability could exceed 150 mmcf per day,” said John C.S. Lau, president and chief executive officer of Husky Energy. “The results from this well are very consistent with those of the other appraisal wells, demonstrating both the quality and consistency of the Liwan 3-1 reservoir. The Liwan three-well appraisal program has delineated the field, increased our understanding of the recoverable resource, and provided us with the necessary reservoir characterization to prepare the plan of development for the Liwan 3-1 field.”
Husky Energy is proceeding with the front end engineering design (FEED) and data from the third appraisal well is being integrated into the program. Currently, Husky Energy expects the plan of development will be submitted to partner and regulatory authorities in late 2009 or early 2010. First gas production is targeted to be in the 2013 timeframe.
Following the completion of the third appraisal well, the West Hercules drilling rig will commence drilling the first of two exploration wells north east of the Liwan 3-1 field in Block 29/26.
Husky Energy has been exploring offshore China since 2002. Husky Energy signed the production sharing agreement for Block 29/26 in August 2004. Block 29/26, located approximately 350 kilometers south east of Hong Kong, is 2,974 square kilometers in area. CNOOC Limited has the right to participate in the development for up to 51% working interest. Husky Energy also holds a 40% working interest in the production block at the Wenchang oil field and 100% working interest in five exploration blocks in the South China Sea and one exploration block in the East China Sea.
