Husky hits pay with new exploration wells

Canada’s Husky Energy has drilled a successful exploration well in the South China Sea and made a discovery in the Atlantic region offshore Newfoundland and Labrador. 

In an update on Friday, Husky said that the successful exploration well has been drilled on Block 15/33 in the Pearl River Mouth Basin located in the South China Sea, about 160 kilometers southeast of Hong Kong.

According to the company, early results from the first of two exploration wells drilled on the 155 square-kilometer block demonstrated four oil-bearing zones with a combined thickness of about 70 meters. Water depth is approximately 80 meters. Further testing is under way to assess potential commercial development.

Husky added that, following completion of the test phase, a second exploration well targeting a separate structure on the block is planned. The company also plans to drill two exploration wells at the nearby Block 16/25 in the second half of 2018.

Husky has a working interest of 100 percent. In the event of a commercial discovery, its partner CNOOC Limited may assume up to 51 percent. Exploration cost recovery from production would be allocated to Husky.

As previously reported, Husky and CNOOC also signed two production sharing contracts for Block 22/11 and 23/07 in the South China Sea.

Atlantic region

Husky also said on Friday that its latest discovery is located approximately 10 kilometers north of the SeaRose FPSO vessel. The White Rose A-24 exploration well, which was drilled in the second quarter of 2018, encountered more than 85 meters of oil-bearing sandstone and the discovery continues to be evaluated.

Husky has a 68.875 percent ownership interest in White Rose A-24, with partners Suncor Energy (26.125 percent) and Nalcor Energy Oil and Gas (five percent).