Canada: Husky Energy Announces Oil Production from the North Amethyst Field

John C.S. Lau, President & Chief Executive Officer of Husky Energy Inc., announced 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.

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Source: Huskyenergy, June 1, 2010;