Canadian firm reports gas discovery off E. Java

Canadian oil, gas firm Husky Energy reported on Thursday that it has discovered more gas at its MDA field in Madura Straits PSC offshore East Java .

The MDA -4 exploration well, which was drilled during the quarter, confirmed additional gas resources in the MDA field. The well tested at an equipment-restricted rate of 18.7 MMCFD. A Plan of Development for the MDA field is expected to be filed in 2012, the company said.

Also in the block, drilling of the MBH-1 exploration well commenced and is expected to be completed in the fourth quarter of 2011, it added.

Meanwhile, the company also reported that tendering of equipment and services for the Madura BD field development in the block is underway with first gas production from it is expected in 2014. In 2007, Husky signed gas sales agreements with three local companies for the sale of 100 million cubic feet per day of natural gas production from Madura Strait PSC

Husky holds a 40% working interest in the block which is operated by CNOOC.(alex)