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Husky Energy announces third significant gas discovery in South China Sea

By: THE CANADIAN PRESS

8/02/2010 5:16 PM | Comments: 0

CALGARY - Husky Energy Inc. (TSX:HSE) has announced its third significant discovery in the South China Sea.

An exploration well in the waters south of Hong Kong tested natural gas at an equipment restricted rate of 57 million cubic feet per day, with indications the Liuhua 29-1 well could produce more than 90 million cubic feet of gas per day in the future.

Husky chief executive John Lau says the discovery, and two others in the same block, support earlier estimates of up to six trillion cubic feet of natural gas initially in place for the area.

Early engineering and design work has wrapped up on Husky's Liwan 3-1 project, to the southwest of the discovery announced Monday.

Last week, Lau said Husky would make a decision on spinning off its southeast Asian assets into a new company some time around the middle of the year.

Husky, controlled by Hong Kong billionaire Li Ka-shing, has oilsands holdings, offshore operations in the Maritimes and a chain of gas stations.

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