Offshore staff

ST. JOHN'S, Newfoundland and Labrador -- Husky Energy Inc. has received regulatory and government approval to increase production to a maximum of 140,000 b/d of oil from the White Rose field in the Jeanne d'Arc basin 350 km (217 mi) southeast of St. John's, Newfoundland.

Husky filed documents with the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) last September seeking approval to increase annual average production capacity from 100,000 to 140,000 b/d. The application followed successful performance testing of the processing facilities onboard theSeaRose FPSO.

The federal and provincial governments and the C-NLOPB approved the increase in daily production for a maximum annual production rate of 50 MMbbl.

"Husky continues to see strong performance from theSeaRose FPSO and the White Rose reservoir," says John C.S. Lau, Husky's president and CEO. "Approval to increase production will provide additional value and benefit to all stakeholders and will result in greater operational flexibility for the White Rose oil field."

Current reservoir capacity of 125,000 b/d is expected to increase to the 140,000 b/d level with the completion of a seventh production well in mid-2007.

An application to tie in production from the South White Rose Extension field is in regulatory review. Meanwhile, Husky is evaluating opportunities to develop newly discovered resources from the West White Rose and North Amethyst fields.

Applications to develop these recent discoveries are scheduled to be filed with the C-NLOPB in 2008. These developments will result in significant extension of the production plateau and life of the White Rose oil field.

An additional delineation well is planned to further define the West White Rose resource.

4/3/2007