NEWS RELEASE TRANSMITTED BY
FOR: HUSKY ENERGY INC.
Naming Ceremony for Husky Energy's First White Rose Shuttle Tanker
Mar 31, 2005 - 12:00 ET
CALGARY--(CCNMatthews - March 22) - Husky Energy is pleased to announce that
a naming ceremony was held today in Busan, South Korea for the first of two
shuttle tankers that will transport oil to market from the White Rose field
off the coast of Newfoundland and Labrador, Canada.
The naming ceremony was held at the Samsung Heavy Industries Koje shipyard,
the same shipyard that in February 2004 delivered the SeaRose Floating
Production, Storage and Offloading (FPSO) hull for the White Rose project.
Attending the ceremony were representatives of Husky Energy and Knutsen OAS,
the Norwegian shipping company from whom Husky is chartering the shuttle
tankers, as well as officials from Samsung Heavy Industries.
The first vessel, the Heather Knutsen, was officially named by vessel sponsor
Mrs. Heather Lau. The Heather Knutsen will be delivered from the shipyard on
March 31, 2005 and is chartered for an initial period of 10 years with
options to extend. The second vessel, the Jasmine Knutsen, will be delivered
on May 23, 2005 and is chartered for an initial period of five years with
options to extend. The vessels will be employed in the marketplace as
conventional trading tankers prior to production start-up at the White Rose
"The completion of the two shuttle tankers represents another critical
milestone in Husky's plans to produce oil from the White Rose field off
Canada's East Coast on time and on budget," said Mr. John C.S. Lau, President
and Chief Executive Officer, Husky Energy Inc. "We are making good progress
in preparing the SeaRose FPSO to the final stages of readiness in Marystown,
Newfoundland and Labrador, and are on schedule to achieve first oil by late
2005 or early 2006."
The Samsung-designed double-hulled tankers each have a crude oil capacity of
one million barrels. The vessels have bow-loading systems and are designed to
load in tandem from the stern of the SeaRose FPSO. Loading the vessels will
take approximately 24 hours. The SeaRose FPSO has a storage capacity of
940,000 barrels of oil, equivalent to about 10 days of production. The
shuttle tankers will transport oil from the White Rose field to market
destinations on the east coast of Canada and the United States.
The shuttle tankers will be operated by Canship-Ugland Ltd. of St. John's,
Newfoundland and Labrador, under a management agreement between Knutsen and
Canship-Ugland. Canship-Ugland also manages the three existing shuttle
tankers serving the Hibernia and Terra Nova fields offshore Newfoundland and
The SeaRose FPSO has been docked since April 2004 at Marystown, Newfoundland
and Labrador, where it is being outfitted for duty in the White Rose field,
350 km east of St. John's. All of the topsides facilities have been installed
and current activities are focused on completing the hook-ups and
commissioning of the vessel.
White Rose is the third major offshore project in the Jeanne d'Arc Basin,
following Hibernia and Terra Nova. The completed SeaRose FPSO is expected to
sail to the White Rose field in the third quarter of 2005.
Husky Energy owns 72.5 percent of the White Rose project and is the operator.
Peak production for the White Rose oilfield is projected to be 100,000
barrels per day. Husky's share of proved and probable reserves for the field
are estimated at 165 million barrels.
Husky Energy is a Canadian based integrated energy and energy-related company
headquartered in Calgary, Alberta. Husky Energy is publicly traded on the
Toronto Stock Exchange under the symbol HSE.
Certain information in this release may contain forward-looking statements.
Actual future results may differ materially. Husky's annual report to
shareholders and other documents filed with securities regulatory authorities
describe the risks, uncertainties and other factors, such as changes in
business plans, that could influence actual results. Husky assumes no
obligation to update forward-looking statements should circumstances or
management's estimates or opinions change.
The Company's disclosure of proved oil and gas reserves and other information
about its oil and gas activities has been made based on reliance of an
exemption granted by the Canadian Securities Administrators. The exemption
permits the Company to make these disclosures in accordance with requirements
in the United States. These requirements and, consequently, the information
presented may differ from Canadian requirements under National Instrument 51-
101, "Standards of Disclosure for Oil and Gas Activities." The proved oil and
gas reserves disclosed in the news release have been evaluated using the U.S.
standards contained in Rule 4-10 of Regulation S-X of the Securities Exchange
Act of 1934. The probable oil and gas reserves disclosed in this news release
have been evaluated in accordance with the Society of Petroleum Engineers.
Cautionary note to U.S. Investors - The United States Securities and Exchange
Commission permits oil and gas companies, in their filings with the SEC, to
disclose only proved reserves that a company has demonstrated by actual
production or conclusive formation tests to be economically and legally
producible under existing economic and operating conditions. The Company uses
certain terms in this news release, such as probable (possible, recoverable,
established, etc.) that the SEC's guidelines strictly prohibit from inclusion
in filings with the SEC.
FOR FURTHER INFORMATION PLEASE CONTACT:
Husky Energy Inc.
Manager, Investor Relations
Husky Energy Inc.
Manager, Administration & Regulatory Affairs
St. John's, NL