Economics and Personal Finances Economics Oil and Energy


Husky Energy significant hydrocarbon discovery in South China Sea.

 
Join the Forum Community!  
Husky Energy significant hydrocarbon discovery in South China Sea. Can't Post
Husky Energy announced a significant hydrocarbon discovery at Liwan 3-1-1, Block 29/26, in the South China Sea. Liwan 3-1-1 was drilled in a water depth of 1,500 metres on Block 29/26 in the Pearl River Mouth Basin and is the first deep water discovery made offshore China. The block is located approximately 250 kilometres south of Hong Kong. The well was drilled on existing 2-D seismic data to a total depth of 3,843 metres on a large structure with 60 square kilometres of closure and encountered 56 metres of net gas pay on logs over two zones. The 2-D seismic interpretation prior to drilling the well indicated a direct hydrocarbon response at the Liwan 3-1-1 location, which Husky's analysis indicates is present over a majority of the 60 square kilometre closure currently mapped. The porosity encountered in the pay zones averaged approximately 20 percent, based on Husky's petrophysical interpretation. Liwan 3-1-1, which is the deepest water well drilled offshore China, confirms the existence of a new
hydrocarbon province.

The Liwan 3-1-1 well will be sidetracked for further evaluation of the pay zone and Husky currently plans a 3-D seismic survey in the near future to assess a number of similar structures which have been identified on 2-D seismic data. Further drilling on the block will follow after the evaluation of the 3-D data. Based on our current interpretation of the 2-D seismic and the Liwan 3-1-1 well results, the discovery could contain a potential recoverable resource of four to six trillion cubic feet of natural gas and as
such, would be one of the largest natural gas discoveries offshore China.

Husky has been actively exploring offshore China, in collaboration with CNOOC (China National Offshore Oil Corporation) since 2002. Husky signed the Production Sharing Agreement for Block 29/26 in August 2004, with a commencement date of October 2004. Block 29/26 is 3,965 square kilometres in area and one of three exploration blocks currently held by Husky in the South China Sea. CNOOC has the right to participate in the development of any discovery for up to 51 percent working interest.

DiscussEconomics - Web's Leading Economic & Finance Forums.
ruby
Deleted

Jun 15, 2006, 4:35 PM

Post #1 of 2 (421 views)

Re: [ruby] Husky Energy significant hydrocarbon discovery in South China Sea. [In reply to] Can't Post
Husky Energy announced that the Company has signed three petroleum contracts with the China National Offshore Oil Corporation (CNOOC) for exploration blocks in the South China Sea, China. The three exploration blocks cover approximately 16,871 square kilometres. Block 29/06 is located in the Pearl River Mouth Basin adjacent to the
Company's existing discovery block 29/26. Block 29/26 contains the Liwan 3-1-1 discovery which has an estimated resource of four to six trillion cubic feet of natural gas. Block 29/06 has an area of 9,265 square kilometres and is in water depths of 500 to 1,500 metres.

The second and third blocks, 35/18 and 50/14 are located in the Ying Ge Hai Basin, west of Hainan Island. Block 35/18 is 4,469 square kilometres in area and Block 50/14 covers 3,137 square kilometres. Both blocks are in water depths of less than 120 metres. Under the terms of the petroleum contracts, Husky will drill one exploration well in each of the Ying Ge Hai blocks and two wells on the 29/06 block within the three year term. Husky will fund 100 per cent of the exploration costs, while CNOOC retains the right to back into any future development with a 51 percent interest.

The acquisition of these exploration blocks brings Husky's total holdings to over 30,000 square kilometres of exploration acreage in the South and the East China Seas.

econmod
Broker / Moderator

Aug 10, 2006, 1:21 PM

Post #2 of 2 (332 views)

  Visit Our Blog