courtesy Petro-Canada

Husky Energy Inc. today announced plans to expand its development and exploration drilling activities at the White Rose project offshore Eastern Canada, where rigs will help bring satellite fields into production by early 2010.

Husky and Petro-Canada have reached a rig-sharing agreement with StatoilHydro in bringing the harsh environment semi-submersible drilling unit Henry Goodrich into the Martime Newfoundland and Labrador oil province. The rig will arrive by summer 2008 for up to 30 months of work. Husky secures 17 months of the rig's work, and the Calgary oil company has already contracted the GSF Grand Banks into the area for three years.

Husky will utilize the Henry 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.

To secure further exploration interests in the Canadian East Coast, Husky has 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 percent working interest in EL 1049. The Mizzen well is expected to be drilled with the Henry Goodrich later in 2008.

The Henry Goodrich drill 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 Terra Nova oil field.

Tags: Husky Energy Inc., Petro-Canada, StatoilHydro