The appraisal well was drilled to a total vertical depth of 3,668 meters below sea level.

“The Liwan appraisal well results continue to be very encouraging and confirm our pre-drill geological projections,” said Lau. “This second appraisal well tested natural gas at an equipment restricted rate of 55 million cubic feet (mmcf) per day with indications that future well deliverability could exceed 150 mmcf per day. The delineation program, together with the drilling of two exploration wells provides key information for the Liwan development project facilities design. First gas production target is scheduled to be in the 2012 / 2013 timeframe”.

With the completion of the appraisal well, the West Hercules deepwater drilling rig is now preparing to spud a second exploration well in block 29/26. The block is located about 350 kilometers south east of Hong Kong.

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 is 2,974 square kilometers in area. Husky Energy 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. CNOOC Limited has the right to participate in the development for up to 51% working interest.