Husky Energy Inc., Calgary, expects to drill two exploratory wells next year on Block 16/25 in the Pearl River Mouth basin 150 km southeast of Hong Kong.
A subsidiary of the company signed a production sharing contract for the block with CNOOC Ltd. of China.
Water depth of the 44-sq-km block is 100 m.
Husky will be operator and hold a 100% working interest during exploration.
CNOOC can assume a participating interest of as much as 51% for development and production.
Husky also plans two exploration wells on nearby Block 15/33.
