Husky assesses two Mackenzie Valley finds

May 25, 2006
Husky Energy Inc., Calgary, is evaluating two discoveries in the Central Mackenzie Valley in Canada's Northwest Territories.

By OGJ editors
HOUSTON, May 25 -- Husky Energy Inc., Calgary, is evaluating two discoveries in the Central Mackenzie Valley in Canada's Northwest Territories.

Husky made a hydrocarbon discovery with the Stewart D-57 (formerly Tehwa D-57) wildcat on Tulita District Land Corp. Freehold Block M-38. The well is 35 km southeast of the Summit Creek B-44 discovery well (OGJ Online, Jan. 9, 2006).

Husky drilled and cased Stewart D-57 to 3,147 m and suspended the well. On open-hole testing, natural gas flowed from two Cretaceous intervals at a combined rate of 5 MMcfd, the company said, "confirming a hydrocarbon-bearing column of at least 50 m." Husky said it is "the first successful Cretaceous hydrocarbon discovery in the Central Mackenzie region."

Husky is operator and holds a 26% working interest in Block M-38. Other partners are Pogo Producing Co. unit Northrock Resources, EOG Resources Canada Inc., Pacific Rodera Energy Inc., and International Frontier Resources Corp.

Summit Creek progress
This summer Husky will acquire 200 km of low-impact 2D seismic data in the Summit Creek area of Northwest Territories, 26 km northwest of the Stewart D-57 discovery.

The company is evaluating results from the Summit Creek K-44 well drilled this winter on Exploration License (EL) 397 as to appraise the Devonian formation and to test deeper-pool Ordovician targets. It is about 1.4 km updip of the Summit Creek B-44 discovery. Summit Creek K-44 was drilled and cased to 3,130 m TD and suspended.

Husky holds a 29.4775% interest in EL 397. Other interest holders include Northrock 32.5%, EOG Resources Canada Inc. 26.3975%, Pacific Rodera Energy Inc. 6.625%, and International Frontier Resources Corp. 5%.

Husky said the group also would commit $10.5 million over the next 4 years to exploration of Block CMV-6, acquired at a May 9 land sale.