Husky updates Indonesian ops

(The following is an edited excerpt from a Quarterly Report released by Canadian oil, gas firm Husky Energy on Wednesday. Ed)

Madura Strait PSC, offshore East Java

Both Husky and CNOOC completed the sale of a 10% equity stake in Husky Oil (Madura) Ltd. to Samudra Energy Ltd. through its affiliate SMS Development Ltd. As a result of the sale, Husky and CNOOC respectively hold a 40% interest in Husky Oil (Madura) Ltd. with the remaining 20% balance held by SMS Development Ltd.

The Indonesian government regulator has approved a gas sales price for the Madura Block and final gas sales agreements are expected to be completed later this year. Tendering of the equipment and services for the BD field development is underway. A delineation well, MDA-4, is planned on the MDA field later this year. First gas production from the Madura Block is expected in 2014.

North Sumbawa II PSC, offshore East Java

Husky currently holds a 100% working interest in the North Sumbawa II Exploration Block, comprised of 5,000 square kilometres in the East Java Sea, where interpretation of 1,020 kilometres of new 2-D seismic data has been completed and several leads have been identified. Husky will use this data to define exploration prospects for future drilling, which is currently planned to commence in 2012. (end of excerpt)