CALGARY, Alberta, Dec 9 - Husky Energy Inc (HSE.TO), Canada's No. 3 integrated oil company, said on Tuesday it has tapped into another big gas field off China's coast similar to its massive Liwan discovery in 2006, one of the biggest-ever gas finds off the country's shore.
The company, which is mulling a spin-off of its Asian operations, said a new well drilled 23 kilometers (14 miles) northeast of its Liwan 3-1 discovery tapped a pool of gas that produced 55 million cubic feet per day in testing, and could produce as much as 140 million cubic feet daily.
The company said that was similar to wells drilled into the Liwan field, located on Block 29/26, 250 km (155 miles) south of Hong Kong. "This exciting exploration discovery, combined with the development of the Liwan 3-1 Field, is a significant milestone towards our goal of strategic commercial development and production from this promising area," John Lau, the company's chief executive, said in a statement.
Husky, controlled by Hong Kong billionaire Li Ka-shing, said it expected the new LH 34-2-1 well, also on block 29/26, drilled in waters more than 1.1 kilometers deep, will be tied into the infrastructure being developed for Liwan.
The company expects to file a development plan for the Liwan field early next year.
China's state-controlled CNOOC Ltd (0883.HK) has the right to acquire a 51 percent stake in Husky's discoveries on the offshore block.
Husky shares fell 30 Canadian cents to C$27.24 on Tuesday on the Toronto Stock Exchange. The company announced the discovery after markets closed. ($1=$1.06 Canadian)
The company, which is mulling a spin-off of its Asian operations, said a new well drilled 23 kilometers (14 miles) northeast of its Liwan 3-1 discovery tapped a pool of gas that produced 55 million cubic feet per day in testing, and could produce as much as 140 million cubic feet daily.
The company said that was similar to wells drilled into the Liwan field, located on Block 29/26, 250 km (155 miles) south of Hong Kong. "This exciting exploration discovery, combined with the development of the Liwan 3-1 Field, is a significant milestone towards our goal of strategic commercial development and production from this promising area," John Lau, the company's chief executive, said in a statement.
Husky, controlled by Hong Kong billionaire Li Ka-shing, said it expected the new LH 34-2-1 well, also on block 29/26, drilled in waters more than 1.1 kilometers deep, will be tied into the infrastructure being developed for Liwan.
The company expects to file a development plan for the Liwan field early next year.
China's state-controlled CNOOC Ltd (0883.HK) has the right to acquire a 51 percent stake in Husky's discoveries on the offshore block.
Husky shares fell 30 Canadian cents to C$27.24 on Tuesday on the Toronto Stock Exchange. The company announced the discovery after markets closed. ($1=$1.06 Canadian)
