Under PSCs in South China sea, Husky will act as operator during  exploration period

Husky Energy has drilled a successful exploration well in the South China Sea offshore China, made a discovery in the Atlantic region offshore Newfoundland and Labrador and signed two new Production Sharing Contracts (PSCs) in Asia, according to a Husky press release.

ASIA PACIFIC REGION

Exploration Success

A successful exploration well has been drilled on Block 15/33 in the South China Sea, about 160 kilometres southeast of Hong Kong.

Early results from the first of two exploration wells drilled on the 155 square-kilometre block demonstrated four oil-bearing zones with a combined thickness of about 70 metres. Water depth is approximately 80 metres.

Further testing is under way to assess potential commercial development.

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.

New PSCs signed in South China Sea

Husky and its partner have also signed two Production Sharing Contracts (PSCs) for Blocks 22/11 and 23/07 in the Beibu Gulf area of the South China Sea. Block 22/11 covers an area of 1,663 square kilometres with a water depth of 40-80 metres and Block 23/07 covers an area of 1,210 square kilometres with a water depth of 20-40 metres.

Under the PSCs, Husky will act as operator during the exploration period. Upon entering a development phase, CNOOC Limited may assume a participating interest up to 51 percent.

ATLANTIC REGION

Husky’s latest discovery is located approximately 10 kilometres north of the SeaRose FPSO (floating production, storage and offloading) vessel.

The White Rose A-24 exploration well drilled in the second quarter of 2018 encountered more than 85 metres 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).