Husky outlines White Rose production expansion plan

Husky Energy plans to expand its development and exploration drilling activities offshore Canada.

Offshore staff

NEWFOUNDLAND AND LABRADOR -- Husky Energy plans to expand its development and exploration drilling activities offshore Canada.

Husky and Petro-Canada have reached a rig sharing agreement with StatoilHydro to bring theHenry Goodrich semisubmersible to Newfoundland and Labrador. The rig is expected to be in the area by summer of 2008, for 24 to 30 months. Husky has extensive land holdings and drillable prospects in the region.

"We are very pleased to partner with StatoilHydro and Petro-Canada in bringing theHenry Goodrich back to the Newfoundland and Labrador waters," says John C.S. Lau, president and CEO of Husky Energy. "Securing this rig gives Husky the flexibility to advance the White Rose subsea tieback program and drill some exciting exploration prospects in the Jeanne d'Arc basin."

Husky will use theHenry Goodrich and the GSF Grand Banks to drill infill producers and injectors to enhance production at the existing White Rose oil pool, and progress the White Rose Satellite developments including North Amethyst and West White Rose. The company hopes to bring its White Rose satellite fields' onstream in late 2009 or early 2010.

Husky has also reached an agreement with StatoilHydro to participate in the Mizzen exploration well on exploration license EL 1049 in the Flemish Pass basin. Under the agreement, Husky will have a 35% working interest in the license. The Mizzen well is expected to be drilled with theHenry Goodrich later this year.

The rig is also scheduled to drill a production and a water injection well in the Terra Nova oil field in late 2008 or early 2009, to supplement production and increase oil recovery. Husky holds a 12.51% interest in the field.

03/11/2008

More in Production