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FOR: HUSKY ENERGY INC.

TSX SYMBOL:
 HSE

Husky Energy Announces Official Opening of its Lloydminster Ethanol Plant

Sep 25, 2006 - 11:59 ET

CALGARY--(CCNMatthews - Sept. 25) - Media are invited to join Mr. John C.S. Lau, President & Chief Executive Officer of Husky Energy Inc. and guests for the official opening of the Lloydminster Ethanol Plant on Tuesday, September 26, 2006, at 2:00 p.m. The event will take place at the Husky Lloydminster Upgrader on Highway 16, east of Lloydminster, Saskatchewan.

Media will have an opportunity to participate in a question and answer session with the Premier of Saskatchewan, Hon. Lorne Calvert, and Mr. Lau.

Husky's facility is the largest plant of its kind in Western Canada and will produce annually at peak production 130 million litres of ethanol and 134,000 tonnes of Distillers Dried Grain with Solubles (DDGS), a high protein feed supplement. The Company expects to purchase 350,000 tonnes of wheat annually from local producers for the manufacturing of ethanol.

Ethanol is a high-octane, alcohol based fuel additive produced from grain, including wheat. Ethanol-blended fuels offer several advantages over regular gasoline, including higher octane ratings, reduced tail-pipe emissions and protection from gas-line freezing.

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.

Cautionary note regarding forward-looking statements or information - 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", "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 or performance. In particular, forward-looking statements include peak production levels from the Lloydminster ethanol plant, the commencement of operations and production levels at the Minnedosa ethanol plant and the annual quantity of wheat expected to be purchased. 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 www.sedar.com and the EDGAR website www.sec.gov) 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 construction projects, 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



FOR FURTHER INFORMATION PLEASE CONTACT:

Husky Energy Inc
Tanis Thacker
Senior Analyst
Investor Relations
(403) 298-6747