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Husky Energy readies oil play exploration in Northwest Territories

Calgary-based oil producer seeks regulatory approval to build infrastructure in remote area.


July 25, 2012
by The Canadian Press

CALGARY: Husky Energy Inc. says it’s gearing up for a winter exploration program in a relatively new oil play in the Northwest Territories.

Planning is underway for continued evaluation of its Slater River project late this year and early next year, the Calgary-based company says.

“This is early days. We will have a better sense of this resource after we do our winter exploration plan this upcoming season,” CEO Asim Ghosh said on a conference call.

“It’s a sequential process and results are being assessed, but there’s much work still to do. In parallel we are continuing consultation with community and officials.”

Husky is seeking regulatory approval to build an all-weather access road and other infrastructure in the remote region, as well as further evaluate two vertical wells it drilled last winter.

“Our focused integration strategy has once again proved its value in helping shield us from a volatile market and the high location discounts that we’ve been seeing in Canada,” said Ghosh.

Husky, controlled by Hong Kong billionaire Li Ka-Shing, produces oil and gas in Western Canada, off Canada’s east coast and in southeast Asia.

The first 60,000-barrel-per-day phase of its Sunrise oilsands project is under construction. The $2.5-billion project, part of a joint-venture with BP PLC, is slated to start up in 2014.

Work on its Liwan natural gas field in the South China Sea is also progressing, with a projected 2013 or 2014 startup.

Husky also has interests in BP-operated refineries in the US, and a chain of Husky-branded fuel retail outlets in Canada.

©The Canadian Press