CALGARY, ALBERTA--(Marketwire -07/24/12)- Husky Energy Inc. released its second-quarter results this week. Highlights included the drilling of additional horizontal wells, bringing Husky’s total to 50 in the first half of 2012. The wells were part of a 140 to 150 well program Husky plans to finish this year.

Oil resource plays

The Company targeted its activity at the Viking, Lower Shaunavon and Oungre projects in southern Saskatchewan and the Redwater and Alliance Viking plays in Alberta. A total of eight (gross) horizontal wells were drilled in the second quarter, resulting in a total of 34 (gross) horizontal wells and two vertical wells drilled in the first half of 2012.

In the northern Cardium resource play at Wapiti in west-central Alberta, two of three horizontal wells drilled in the first quarter were brought on production, with results as expected.

At the Rainbow Muskwa project in northwest Alberta, two additional horizontal shale oil wells were drilled and cased. The Company also placed its first horizontal shale oil well on production, to be followed by a four-well summer completion program.

At the Slater River Project in the Northwest Territories, planning was advanced on a proposed winter program which, if approved, would include construction of an all-season road and further evaluation of the two vertical wells drilled in the first quarter of this year.


Gas resource plays

Gas resource activities were concentrated in the producing Ansell and Kaybob plays in west-central Alberta. A total of three wells were drilled at Ansell, bringing the number of wells drilled on the play to 12 in the first half of 2012, along with a total of 31 well completions.

Four horizontal wells were drilled at Kaybob to evaluate the liquids-rich Duvernay gas play, with one completed and placed on production in the second quarter.

Heavy Oil

Production began in June at both the 8,000 bbls/day capacity Pikes Peak South and 3,000 bbls/day capacity Paradise Hill thermal projects, with a gradual increase to full volumes anticipated by the end of the year. The Company sanctioned a 3,500 bbls/day thermal development at Sandall, with first production anticipated in 2014.

Design work advanced on an 8,000 bbls/day commercial project at the Company's Rush Lake thermal development, which is expected to begin production in 2015.

Work continued on repositioning and developing the Western Canada and Heavy Oil foundation. First oil was achieved at the 8,000 barrels per day (bbls/day) Pikes Peak South and 3,000 bbls/day Paradise Hill heavy oil thermal projects, which are expected to ramp up by the end of the year. The 3,500 bbls/day Sandall thermal project was sanctioned, with production expected in 2014.