Offshore staff

CALGARY, Alberta -- Husky Energy Inc. plans to spend $3.18 billion next year for ongoing exploration and development in western Canada, offshore Canada's east coast, and internationally.

"Our 2007 capital expenditure program will focus on Husky's growth in the oil sands, and further exploration and development in the offshore east coast of Canada, offshore China, and Indonesia," says John C.S. Lau, president and CEO.

Husky plans to spend $290 million in Atlantic Canada next year. The program includes drilling and completion of a seventh production well in the White Rose oil field and delineation of the O-28 discovery in the West Avalon Pool north of the existing White Rose development.

Internationally, Husky intends to drill an exploration well in block 04/35 in the East China Sea. In the South China Sea, the company plans to begin facility studies for potential development of the Liwan gas discovery and a 3D seismic program over blocks 29/26 and 29/06. The company also plans to spend $60 million to move forward development of the Madura BD natural gas field offshore Indonesia and on a 3D seismic program over the recently acquired East Bawean II block.

12/12/2006