Husky Energy Announces Further Discovery in The White Rose Oil Field Extension

Jun 20, 2006 - 11:59 ET

ST. JOHN'S--(CCNMatthews - June 20) - Mr. John C.S. Lau, President & Chief Executive Officer of Husky Energy Inc., announced today that Husky has made a hydrocarbon discovery at the White Rose O-28 delineation well in the western section of the White Rose oil field, offshore Newfoundland and Labrador, Canada.

The O-28 well was drilled on Significant Discovery Licence 1044 to depths of up to 3,342 metres. The well revealed a 280 metre oil column in a multi- layered reservoir in the Ben Nevis Avalon formation. An additional side-track well is being drilled and logged to provide further information about reservoir quality, continuity and hydrocarbon contacts. Based on our current interpretation of the 3-D seismic and the O-28 well results, the discovery could contain a potential recoverable resource of 40 to 90 million barrels of oil. This potential recoverable resource is in addition to the gross proved and probable reserves of approximately 240 million barrels recognized in the White Rose oil field at the end of 2005.

"We are very encouraged by the initial results from the O-28 delineation well and this pool should provide an important addition to the White Rose oil field," said Mr. Lau. "Further drilling and reservoir evaluation will be carried out to determine the extent of the reservoir and its recoverable reserves. We expect this discovery will significantly extend the production plateau and field life of the White Rose oil field." Mr. Lau further indicated that additional delineation wells are planned for the White Rose area over the next few years.

Husky Energy plans to tie this western extension of the oil field back to the SeaRose FPSO (floating production, storage and offloading vessel). The SeaRose FPSO is presently producing approximately 85,000 barrels of oil per day from four production wells. A fifth production well, which is being completed and scheduled to come on production later this month, will increase reservoir production capacity to approximately 110,000 barrels of oil per day. A sixth production well, which is scheduled to come on stream at the end of 2006, will further increase reservoir production capacity to 125,000 barrels of oil per day.

Husky Energy will be completing performance testing on the SeaRose FPSO during this summer to determine the productive capacity of the FPSO and will be applying to the regulatory authority C-NLOPB (Canada - Newfoundland and Labrador Offshore Petroleum Board) to increase the annualized daily production limit above the currently approved 100,000 barrels of oil per day.

Husky Energy holds a 72.5 percent working interest in the White Rose oil field and is the project operator.

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 statements contained in this news release constitute forward looking statements or information (collectively, "forward looking statements") within the meaning of applicable securities legislation. These forward looking statements relate to future events or Husky's future performance. The use of any of the words "could", "should", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward looking statements and are based on Husky's current belief or assumptions as to the outcome and timing of such future events, and in this news release include White Rose drilling, evaluation, tie-back and production plans, the application to the C-NLOPB, and the size and potential of this White Rose oil filed discovery. Actual future results may differ materially. Husky's annual report to shareholders and other documents filed with securities regulatory authorities (accessible through the SEDAR website and the EDGAR website describe the risks, uncertainties and other factors, such as drilling results, changes in business plans and potential delays or changes in plans with respect to development projects or capital expenditures, that could influence actual results. Except as required by law, Husky disclaims any intention or obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

Reserves Data and Other Oil and Gas Information - Husky's disclosure of reserves data and other oil and gas information is made in reliance on an exemption granted to Husky by Canadian securities regulatory authorities, which permits Husky to provide disclosure required by and consistent with those of the United States Securities and Exchange Commission and the Financial Accounting Standards Board in the United States in place of much of the disclosure expected by National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. Please refer to "Disclosure of Exemption Under National Instrument 51-101" at page 9 of our Annual Information Form for the year ended December 31, 2005 filed with securities regulatory authorities for further information.

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 with actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this release, such as "probable reserves" and "recoverable resource" that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. investors should refer to our Annual Report on Form 40-F available from us or the SEC for further reserve disclosure.


Husky Energy Inc.
Colin Luciuk
Manager, Investor Relations & Corporate Communications
(403) 750-4938


Husky Energy Inc.
Margaret Allan
Manager, Administration & Regulatory Affairs
(709) 724-3981