NEWS RELEASE TRANSMITTED BY
FOR: HUSKY ENERGY INC.
Husky Energy Announces Oil Production From the North Amethyst Field
May 31, 2010 - 08:07 ET
CALGARY, ALBERTA--(Marketwire - May 31, 2010) - John C.S. Lau, President & Chief Executive Officer of Husky Energy Inc. (TSX:HSE), is pleased to announce that oil production has been achieved from the North Amethyst field offshore Newfoundland & Labrador. Oil began flowing from the field on May 31.
North Amethyst is the first satellite field development at Husky's White Rose project and was brought on production less than four years after discovery. It is also the first subsea tieback project in Canada.
"We are very pleased with the successful satellite development at North Amethyst," said Mr. Lau. "This is a major milestone for Husky. Developing North Amethyst and the other satellite fields will complement the existing reservoir and extend the production life of White Rose. "
Located approximately 350 kilometres offshore Newfoundland, the North Amethyst field is the first step in the staged development of the White Rose satellite fields. North Amethyst holds an estimated 90 million barrels of reserves (34.7 proven, 35.3 probable, 20 possible) as of December 31, 2009.
Wells in the subsea North Amethyst Drill Centre will be "tied back" to the SeaRose FPSO through flexible underwater flowlines. The SeaRose FSPO is stationed approximately six kilometres away from the North Amethyst field. Production from North Amethyst is anticipated to rise to a peak of approximately 37,000 barrels of oil per day as the remaining wells are drilled and brought on line.
Husky has been active on the East Coast of Canada for more than 25 years and holds a significant land base with 14 Exploration Licences and 23 Significant Discovery Areas.
Husky is the operator of White Rose and its satellite fields, holding a 72.5 percent working interest in the main White Rose field and a 68.9 percent interest in the satellites, which include North Amethyst and West White Rose. Suncor Energy holds 27.5 percent interest in the core White Rose field, and 26.1 percent interest in the satellite fields. The Government of Newfoundland & Labrador, through Nalcor Energy - Oil and Gas, holds a five percent working interest in the satellite fields.
"Husky has partnered with Suncor and Nalcor Energy in developing this important energy resource," said Mr. Lau. "We will continue to examine other near-field tieback opportunities, including an assessment of the Hibernia reservoir sandstones beneath the main White Rose and North Amethyst fields."
Husky Energy is an integrated energy and energy-related company headquartered in Calgary, Alberta, Canada. Husky Energy is a publicly traded company listed on the Toronto Stock Exchange under the symbol HSE. More information is available at www.huskyenergy.com.
Forward Looking Information
Certain statements in this press release are forward-looking statements or information (collectively "forward-looking statements"), within the meaning of the applicable securities legislation. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as: "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intend," "plan," "projection," "could," "vision," "goals," "objective" and "outlook") are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. In particular, this news release includes forward-looking statements relating to expected production from the North Amethyst field. Although Husky believes that the expectations reflected by the forward-looking statements presented in this press release are reasonable, Husky's forward-looking statements have been based on assumptions and factors concerning future events that may prove to be inaccurate. Those assumptions and factors are based on information currently available to Husky about itself and the businesses in which it operates. Information used in developing forward-looking statements has been acquired from various sources including third party consultants, suppliers, regulators and other sources. Husky's Annual Information Form 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, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. Except as required by applicable securities laws, 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.
Disclosure of Oil and Gas Reserves and Other Oil and Gas Information
Husky's disclosure of proved, probable and possible oil and gas reserves and other information about its oil and gas activities has been made based on reliance of an exemption granted by Canadian Securities Administrators. The exemption permits Husky 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." Please refer to "Disclosure of Exemption under National Instrument 51-101" in the Annual Information Form for the year ended December 31, 2009 filed with securities regulatory authorities for further information.
The proved, probable and possible reserves for North Amethyst disclosed in this news release use annual average pricing according to the new requirements in the United States.
Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. It is unlikely that the quantities actually recovered will exceed the sum of the proved plus probable plus possible reserves. There is at least a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.
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