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| Wednesday, 17 September 2008 | |||
 Husky’s East-Central Alberta operation consists of 23 facilities with pipeline systems and an average working interest of 90 percent in the producing wells, the firm says.
Husky’s East-Central operation consists of 23 facilities with pipeline systems and an average working interest of 90 percent in the producing wells, the company says. It holds about 1,000 square kilometers of undeveloped land with infill, step-out and exploratory wells to effectively recover and develop new pools to keep its facilities operating at capacity, the company says. Husky’s gross production in the area averaged 47 million cubic feet per day of natural gas and 500 barrels per day of crude oil in 2007. “[Our] focus is on exploring, acquiring and developing properties in core areas that complement [our] infrastructure,” the company explains. “Conventional exploration is focused on natural gas prospects in Alberta, British Columbia and the northwest territories and on tight gas and coal bed methane in Alberta.” It uses an enhanced oil recovery technique to increase it production, Husky says. “The company’s heavy oil strategy consists of utilizing primarily cold production to optimize production to offset declines, applying enhanced oil recovery technologies and identifying new technologies for future operations,” Husky states. Its growth strategy is linked to the company’s oil sands holdings. “[We have] established a substantial and diverse asset base in the Alberta oil sands and own underdeveloped leases in the Cold Lake and Athabasca regions,” Husky continues. “The company owns leases totaling to approximately 2,162 square kilometers. Production at Husky’s Tucker oil sands project came on stream in November 2006. Development planning is well underway for future oil sands projects, which will provide medium- to long-term growth for the company.” Strong Portfolio Husky claims to be one of the largest energy and energy-related companies in the industry. With more than $21 billion in assets and about 4,100 employees, the company is positioned for growth in the coming years. It owns assets in western and eastern Canada and in Asia. Production ranges from short-term shallow oil and gas production in eastern Alberta to longer life, deep oil and gas production in western Alberta, northeast British Columbia, southwest Saskatchewan, as well as the East Coast of Canada, the company explains. The company has upstream, midstream and refined products operations. “Upstream operations include exploration, development and production of crude oil, bitumen and natural gas,” Husky says. “Midstream operations encompass upgrading of heavy crude oil into premium synthetic crude oil, pipeline transportation, gas storage, cogeneration, and the marketing of a wide range of petroleum-based products. “Refined products include the refining, marketing and distribution of gasoline, diesel, asphalt, ethanol and ancillary services in Canada and the United States, and a network of retail outlets from Ontario to British Columbia and the Yukon.” Significant Ventures Husky enjoyed a successful year in 2007, with annual earnings increasing to $3.2 billion, up 18 percent over 2006. It adds that cash flow operations improved by 21 percent to $5.4 billion, and sales and operating revenues were $15 billion, an increase of 23 percent in 2006. Also in 2007, Husky purchased 110,000 acres of oil sands leases at McMullen, located in the west-central Athabasca oil sands deposit. McMullen is adjacent to oil sands leases that Husky already owns. The transaction cost $105 million. Husky also ventured into the hydrocarbon market in 2006, with the discovery of 4 to 6 trillion cubic feet of natural gas in the South China Sea, “making it one of the largest discoveries offshore China,” Husky says. The company adds that it has seven exploration blocks in offshore China, totaling 7.6 million acres. Other current developments include:
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