Husky Energy Inc. announced today that the Company has signed a petroleum contract with the China National Offshore Oil Corporation for an exploration block in the South China Sea, China.
The exploration block 63/05 covers approximately 1,777 square kilometers and is located in the Qiongdongnan Basin approximately 100 kilometers south of Hainan Island, in water depth of less than 120 meters.
“Husky is pleased to acquire this new exploration block. The acquisition allows us to enhance our position in natural gas prone basins, close to existing and expanding markets,” said Husky President and CEO John C.S. Lau.
“Husky's deep water discovery at Liwan 3-1 illustrates this potential. With the acquisition of block 63/05, Husky is now in all of the major petroleum basins offshore Southern China,” added Lau.
The acquisition of this new exploration block brings Husky's total holdings to more than 31,000 square kilometers of exploration acreage in the South and East China Seas.
Husky acquired block 29/06 in the Pearl River Mouth Basin adjacent to the Company's existing discovery on block 29/26, and two additional blocks in the gas prone Yingge Hai Basin in 2006. Husky has now completed acquisition of 925 square kilometers of 3D seismic, creating contiguous 3D seismic coverage of 3,676 square kilometers, over blocks 29/26 and 29/06.
In addition, Husky also completed 750 square kilometers of 3D seismic over the Yingge Hai block 35/18, and expects to drill exploration wells on each of the two Liwan blocks and the two Yingge Hai blocks in 2009-2010.
The Seadrill West Hercules drilling rig is expected to be ready on schedule and is currently undergoing commissioning in South Korea. Husky expects to commence delineation drilling on the Liwan 3-1 discovery in the third quarter.
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