Husky South China Sea appraisal well flows gas

By OGJ editors
HOUSTON, June 1 -- Husky Energy Inc., Calgary, said the first appraisal well at its Liuhua 29-1 discovery on Block 29/26 in the South China Sea could be capable of delivering 60-70 MMcfd of gas.

The well, drilled to 2,930 m in 765 m of water, flowed at an equipment-restricted rate of 55 MMcfd from an undisclosed depth. More appraisal drilling, planned for later this year, is needed to improve understanding of the recoverable resource and provide reservoir data for a development plan, the company said.

Liuhua 29-1 field is Husky’s third large deepwater gas discovery on the block. It is 43 km northeast of Liwan 3-1 field and 20 km northeast of Liuhua 34-2 field.

Husky expects to submit development plans for Liwan 3-1 and Liuhua 34-2 fields to regulatory authorities later this year. It will develop those two fields in parallel, starting production in 2013. It will submit a plan for Liuhua 29-1 when ready.

The West Hercules semisubmersible is preparing to spud the Liwan 5-2-1 exploration well on the block before returning to Liuhua 29-1 to drill a second appraisal well.