Page 8 - Sphere No.13 (Dec 2004)
Basic HTML Version
S
PHERE
6
News
bites
Exploration Agreement
Husky
on Aug. 16 signed a petroleum
contract with
China National Offshore
Oil Corporation
(CNOOC) for the
29/26 exploration block in the South
China Sea. The exploration block is
located 300km southeast of Hong Kong
and covers approximately 3,900 sq km.
It is the seventh petroleum contract
signed between Husky and CNOOC.
Husky meanwhile has purchased a 68.7%
interest in a production-sharing contract
in the Madura Strait, offshore Indonesia.
The US$50-million transaction, signed in
October, gives Husky a 100% interest in
an exploration block where two natural
gas fields have been discovered. Husky
plans to develop the fields and pursue
additional opportunities within the
2,794 sq km of exploration acreage.
Well Oiled
Confirming the quality of
Husky’s
White Rose oilfield, production tests
carried out between July 20 and 25, 2004
estimated productive capability of the
well to be between 25,000 and 35,000
barrels per day. During the tests, oil
flowed to the surface at a rate of more
than 9,000 barrels per day. Husky plans
to drill three more production wells to
produce 100,000 barrels per day at
White Rose, starting in late 2005/2006.
Muddy Milestone
A sod-turning ceremony on Oct. 28 saw
Husky
take another step forward with
its planned ethanol facility. Husky is
building the 130-million-litre-per-year
facility adjacent to its heavy oil upgrader
Gas from Coal
Husky Energy
in July signed a farm-out and JV agreement with
Trident
Exploration Corp
to develop natural gas from coal (NGC) or coal bed methane
(CBM) in central Alberta. The agreement extends the original 2002 JV for the
exploration and development of NGC in the Fenn Rumsey area. The agreement
calls for an additional 120 wells to be drilled
over the next two years. Capital costs
for drilling and associated
facilities will be approximately
C$40 million, of which
Husky will pay 30% to
earn a 50% interest in
the production.
at Lloydminster in Saskatchewan. It will
be fully operational by mid-2006.
Winds of Change
Green power will be made available to
customers of the
Hongkong Electric
Company
(HEC) when Hong Kong’s first
commercial-scale wind turbine begins
operation on Lamma Island in early 2006.
The turbine has a capacity ranging from
600 to 850 kW and is expected to produce
electricity up to 700 MWh a year. The
HK$10 million (approximately US$1.26
million) pilot project will provide HEC
with important practical experience that
might underpin more
sizeable projects in the
long term.
Husky Q3 Results
Husky Energy
reported net earnings
of C$286 million (approximately
US$234 million) or C$0.70 per share
(diluted) in Q3, 2004 compared to
C$249 million (diluted) in Q3, 2003.
Cash flow from operations was C$576
million (diluted) compared with C$604
million in the corresponding period in
2003. Production averaged 324,800
barrels of oil equivalent per day,
compared with 300,200 barrels in Q3,
2003, an increase of 8%. For full results,
see:
E N E R G Y & I N F R A S T R U C T U R E
