The 1,777sqkm block is located approximately 100km south of China’s Hainan Island, in water depth of less than 120m. The acquisition of this new exploration block brings Husky’s total holdings to more than 31,000sqkm of exploration acreage in the South and East China seas.
Husky had acquired block 29-06 in the Pearl River Mouth Basin adjacent to the company’s existing discovery on block 29-26, and two additional blocks in the gas-rich Yingge Hai Basin in 2006.
Husky has now completed 925sqkm of 3D seismic, creating contiguous 3D seismic coverage of 3,676sqkm, over blocks 29-26 and 29-06. In addition, Husky has also completed 750sqkm of 3D seismic over the Yingge Hai block 35-18, and expects to drill exploration wells on each of the two Liwan blocks and the two Yingge Hai blocks in 2009-10.
The Seadrill West Hercules drilling rig is expected to be ready on schedule and is currently undergoing commissioning in South Korea. Husky expects to commence delineation drilling on the Liwan 3-1 discovery in the third quarter of 2008.
