Husky Energy is having success with the drillbit, recently making two discoveries—one in the Atlantic region offshore Newfoundland, Canada, and another in the South China Sea.
The company said in a news release May 18 that early results from an exploration well drilled on Block 15/33, which is about 160 km (99 miles) southeast of Hong Kong, in the South China Sea demonstrated four oil-bearing zones with a combined thickness of about 70 m (230 ft). The water depth is about 80 m (264 ft).
Husky said it is conducting tests to assess the discovery's commerciality potential. Following testing, a second exploration well targeting a different structure will be drilled on the block. Two more exploration wells will be drilled at nearby Block 16/25 in second-half 2018.
The company has a 100% working interest, but partner CNOOC Ltd. may assume up to 51% if there is a commercial discovery on the block with Husky covering exploration cost recovery from the production, according to the release.
Another discovery was made about 10 km (6 miles) north of the SeaRose FPSO vessel, where Husky said the White Rose A-24 exploration well hit more than 85 m (279 ft) of oil-bearing sandstone. Husky has a 68.875% interest in White Rose A-24. Partners are Suncor Energy (26.125%) and Nalcor Energy Oil and Gas (5%).
In other news, Husky said the company and its partner signed two production-sharing contracts (PSCs) for blocks 22/11 and 23/07 in the South China Sea’s Beibu Gulf area. Under the PSCs, Husky will serve as operator during the exploration phase, and CNOOC Ltd. may assume up to a 51% participating interest.
Block 22/11 spans 1,663 sq km (642 sq miles) with a water depth of between 40 m and 80 m (131 ft and 262 ft), while Block 23/07 covers 1,210 sq km (467 sq miles) with a water depth between 20 m and 40 m (66 ft and 131 ft).
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