Husky presses work in basins off South China

July 2, 2008
Husky Energy Inc., Calgary, has signed on for its eighth block off South China and plans to begin delineating its Liwan 3-1 deepwater gas discovery later this year.

By OGJ editors
HOUSTON, July 2 -- Husky Energy Inc., Calgary, has signed on for its eighth block off South China and plans to begin delineating its Liwan 3-1 deepwater gas discovery later this year.

Husky signed a contract with China National Offshore Oil Corp. for the 1,777 sq km Block 63/05 in the Qiongdongnan basin 100 km southeast of Hainan Island. The block is a similar distance southwest of Block 29/26, where Husky Energy plans to start delineation drilling in the third quarter of 2008 at its Liwan 3-1 discovery.

Liwan 3-1, in 1,300 m of water in the southwestern Pearl River Mouth basin, is the deepest water well drilled off China (OGJ, Mar. 26, 2007, p. 39). The South China Sea discovery well cut 56 m of net gas pay averaging 20% porosity in two zones on a structure with 60 sq km of closure.

The Liwan discovery well was drilled on 2D seismic, and Husky has now shot 925 sq km of 3D seismic across Block 29/26 and adjacent 29/06.

Husky also shot 750 sq km of 3D seismic on Block 35/18 in the Yinggehai basin west of Hainan Island and expects to drill exploration wells in 2009-10 on Yinggehai blocks 35/18 and 50/14 and Liwan blocks 29/06 and 29/26.