Independent assessment hikes Husky heavy oil resources

Husky Energy Inc., Calgary, says an independent assessment increases its heavy oil resources in the Lloydminster region of Alberta and Saskatchewan.

Husky Energy Inc., Calgary, says an independent assessment increases its heavy oil resources in the Lloydminster region of Alberta and Saskatchewan.

The assessment by Sproule Unconventional Ltd. estimated Husky’s working interest in best estimate contingent resources to be 1.9 billion bbl, of which 1 billion bbl has the potential to be recovered using thermal technology.

The total is an increase from the 107 million bbl booked at yearend 2013. Husky said the previous estimate took into account only projects that were “well advanced” toward development.

“Our heavy oil business has undergone a complete transformation and this assessment confirms we have more room to run,” said Husky Chief Executive Officer Asim Ghosh.

The Lloydminster block spans 37,000 sq km and has more than 4,000 producing wells. Husky has an upgrader, asphalt refinery, ethanol plant, and an extensive pipeline gathering system.

The company said start of production from the 10,000-b/d Rush Lake project is planned for third-quarter 2015 while the 10,000-b/d Edam East project is slated for third-quarter 2016.

Husky said 3-month project delays for both projects were not due to falling oil prices.

Startups for the 3,500-b/d Edam West project and the 10,000-b/d Vawn project are expected in fourth-quarter 2016.

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