Husky expects to seal E. Java gas sales deal end of 2007

Canadian oil, gas firm Husky Energy expects to sign formal gas sales agreements (GSA) and file a plan of development for its Madura BD gas field in East Java with the Indonesian Government by the end of 2007.

The company has signed HoA to sell gas to East Java customers PT Parna Raya, PT Inti Alasindo Energy, and PT Perusahaan Gas Negara Tbk (PGN) in August 2007. Gas would flow to the three customers at the combined rate of 100-110 MMCFD.

The company said in a quarterly report released on Wednesday that Environmental Impact Studies are also underway and are expected to be completed by year-end.

Husky has 100 percent interest in Madura Strait PSC, where Madura BD gas field is located.

The company also said it has commenced discussion with the government of Indonesia regarding extension of its Madura Straits PSC in East Java.

Meanwhile, the company reported that on the East Bawean II PSC, it has contracted the acquisition of 1,400 square kilometers of 3-D seismic data, which will commence in the fourth quarter of 2007.

Husky has 100 percent interest in Bawean II PSC, which is located in East Java. (alex)