Husky Energy Reserves Replacement Reflects Consistent Growth

Husky Energy Reserves Replacement Reflects Consistent Growth 
CALGARY, ALBERTA -- (Marketwire) -- 03/08/13 --  
Highlights: 


 
--  Average proved two-year reserves replacement ratio of 175 percent,
    excluding economic revisions 
--  1.2 billion barrels of oil equivalent (boe) total proved reserves before
    royalties 
--  Reserves life index of 10.8 years, up from 10.3 in 2011

 
Husky Energy (TSX:HSE) continued to add more proved reserves compared
to production in 2012, reflecting increased heavy oil recovery from
its thermal projects and final regulatory approval of the Liwan Gas
Project in the Asia Pacific Region. 
Reserves growth has consistently outpaced production, with an average
proved reserves replacement ratio over the past two years of 175
percent. Including economic revisions, the average proved two-year
reserves replacement ratio was 149 percent, ahead of the five-year
average target of 140 percent per year. 
The Company is adding to its reserves while continuing to advance a
rich pipeline of projects as it targets an annual production growth
rate of five to eight percent through 2017. 
At year end 2012, Husky had total proved reserves before royalties of
1.2 billion boe, probable reserves of 1.7 billion boe and best
estimate contingent resources of 13.1 billion boe. The Company's Oil
Sands portfolio was responsible for 11.6 billion boe of the best
estimate contingent resources total. 


 
                       2012 Reserves Reconciliation(1)                      
----------------------------------------------------------------------------
                                   Proved               Probable    TOTAL   
----------------------------------------------------------------------------
                      Developed Undeveloped   Total                         
----------------------------------------------------------------------------
       Dec. 31, 2011     757        415       1,172      1,679      2,851   
----------------------------------------------------------------------------
          Production    (110)        0        (110)        0        (110)   
----------------------------------------------------------------------------
        Acquisitions      1          0          1          0          1     
----------------------------------------------------------------------------
        Divestitures     (1)         0         (1)         0         (1)    
----------------------------------------------------------------------------
       Additions (2)      25        107        132         84        216    
----------------------------------------------------------------------------
           Transfers      44        (44)        0         (20)       (20)   
----------------------------------------------------------------------------
 Technical Revisions      30        (8)         22        (6)         16    
----------------------------------------------------------------------------
  Economic Revisions     (17)       (7)        (24)       (14)       (38)   
----------------------------------------------------------------------------
       Dec. 31, 2012     729        463       1,192      1,723      2,915   
----------------------------------------------------------------------------
                                                                            
-   Reserves are based on Canadian National Instrument 51-101 (NI 51-101)   
    rules, which require the use of year-end forecast prices.               
(1) Figures are represented in millions of barrels of oil equivalent        
(2) Additions = Discoveries + Extensions + Improved Recovery                

 
SELECT HIGHLIGHTS: 
Foundation 


 
--  Improved recovery and expansion of heavy oil thermal projects, including
    the new Pikes Peak South and Paradise Hill developments, added 13
    million boe in proved reserves. 
 
--  Additional drilling locations at the liquids-rich gas Ansell project
    resulted in the booking of an additional 27 million boe of natural gas
    and natural gas liquids in proved reserves.
 
--  In total, proved reserves in Western Canada, including Heavy Oil but
    excluding Oil Sands, were 850 million boe as of December 31, 2012. 

 
Growth Pillars 


 
--  Following final regulatory approval of the Overall Development Plan by
    the Government of China, the initial booking of reserves for the
    deepwater Liwan Gas Project added 51 million boe of natural gas and
    natural gas liquids in proved undeveloped reserves.
 
--  The Sunrise Energy Project has estimated reserves of 3.7 billion barrels
    of bitumen (0.36 proved, 2.48 probable and 0.86 possible billion
    barrels) as of December 31, 2012. Husky has a 50 percent working
    interest in the reserves.

 
A full reporting of the Company's oil and natural gas reserves data
for the year ended December 31, 2012 has been included in the Annual
Information Form (AIF), which was filed with securities regulators on
March 8, 2013 on the Canadian System for Electronic Document Analysis
and Retrieval (SEDAR), and the U.S. Electronic Data Gathering,
Analysis and Retrieval (EDGAR) System. It may be accessed
electronically at www.sedar.com and www.sec.gov. Both the Canadian
and U.S. disclosure documents may also be accessed electronically
from Husky's website at www.huskyenergy.com 
Husky Energy is one of Canada's largest integrated energy companies.
It is headquartered in Calgary, Alberta, Canada and is publicly
traded on the Toronto Stock Exchange under the symbol HSE and
HSE.PR.A. More information is available at www.huskyenergy.com 
FORWARD-LOOKING STATEMENTS 
Certain statements in this document are forward-looking statements
and information (collectively "forward-looking statements"), within
the meaning of the applicable Canadian securities legislation,
Section 21E of the United States Securities Exchange Act of 1934, as
amended, and Section 27A of the United States Securities Act of 1933,
as amended.  
The forward-looking statements contained in this document are
forward-looking and not historical facts. Such forward-looking
statements are based on the Company's current expectations,
estimates, projections and assumptions that were made by the Company
in light of its experience and its perception of historical trends.
Further, such forward-looking statements are subject to risks,
uncertainties and other factors, some of which are beyond the
Company's control and difficult to predict. Accordingly, these
factors could cause actual results or outcomes to differ materially
from those expressed or projected in the forward-looking statements.
Some of the forward-looking statements and information may be
identified by statements that express, or involve discussions as to,
expectations, beliefs, plans, objectives, assumptions or future
events or performance (often, but not always, through the use of
words or phrases such as "will likely result", "are expected to",
"will continue", "is anticipated", "is targeting", "estimated",
"intend", "plan", "projection", "could", "aim", "vision", "goals",
"objective", "target", "schedules" and "outlook"). In particular,
forward-looking statements in this news release include, but are not
limited to, references to, with respect to the business, operations
and results of the Company generally: the Company's target five-year
average reserves replacement ratio; and the Company's target annual
growth rate through 2017. 
In addition, statements relating to "reserves" and "resources" are
deemed to be forward-looking statements as they involve the implied
assessment based on certain estimates and assumptions that the
reserves or resources described can be profitably produced in the
future. There are numerous uncertainties inherent in estimating
quantities of reserves and resources and in projecting future rates
of production and the timing of development expenditures. The total
amount or timing of actual future production may vary from reserves,
resources and production estimates. 
Although the Company believes that the expectations reflected by the
forward-looking statements presented in this document are reasonable,
the Company's forward-looking statements have been based on
assumptions and factors concerning future events that may prove to be
inaccurate. Those assumptions and factors are based on information
currently available to the Company about itself and the businesses in
which it operates. Information used in developing forward-looking
statements has been acquired from various sources including
third-party consultants, suppliers, regulators and other sources. 
Because actual results or outcomes could differ materially from those
expressed in any forward-looking statements, investors should not
place undue reliance on any such forward-looking statements. By their
nature, forward-looking statements involve numerous assumptions,
inherent risks and uncertainties, both general and specific, which
contribute to the possibility that the predicted outcomes will not
occur. Some of these risks, uncertainties and other factors are
similar to those faced by other oil and gas companies and some are
unique to Husky. 
The Company's Annual Information Form for the year ended December 31,
2012 and other documents filed with securities regulatory authorities
(accessible through the SEDAR website www.sedar.com and the EDGAR
website www.sec.gov) describe the risks, material assumptions and
other factors that could influence actual results and are
incorporated herein by reference.  
Any forward-looking statement speaks only as of the date on which
such statement is made, and, except as required by applicable
securities laws, the Company undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after
the date on which such statement is made or to reflect the occurrence
of unanticipated events. New factors emerge from time to time, and it
is not possible for management to predict all of such factors and to
assess in advance the impact of each such factor on the Company's
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking statement. The impact of any one
factor on a particular forward-looking statement is not determinable
with certainty as such factors are dependent upon other factors, and
the Company's course of action would depend upon its assessment of
the future considering all information then available. 
Disclosure of Oil and Gas Information 
Unless otherwise specified, reserves and resources estimates
represent Husky's share and are given with an effective date of
December 31, 2012. The Company uses the term barrels of oil
equivalent ("boe"), which is calculated on an energy equivalence
basis whereby one barrel of crude oil is equivalent to six thousand
cubic feet of natural gas. Readers are cautioned that the term boe
may be misleading, particularly if used in isolation. This measure is
primarily applicable at the burner tip and does not represent value
equivalence at the wellhead. 
The Company has disclosed best-estimate contingent resources in this
document. Contingent resources are those quantities of petroleum
estimated, as of a given date, to be potentially recoverable from
known accumulations using established technology or technology under
development, but which are not currently considered to be
commercially recoverable due to one or more contingencies.
Contingencies may include factors such as economic, legal,
environmental, political and regulatory matters, or a lack of
markets. There is no certainty that it will be commercially viable to
produce any portion of the contingent resources.  
Best estimate as it relates to resources is considered to be the best
estimate of the quantity that will actually be recovered. It is
equally likely that the actual remaining quantities recovered will be
greater or less than the best estimate. Estimates of contingent
resources have not been adjusted for risk based on the chance of
development. There is no certainty as to the timing of such
development. For movement of resources to reserves categories, all
projects must have an economic depletion plan and may require, among
other things: (i) additional delineation drilling and/or new
technology for unrisked contingent resources; (ii) regulatory
approvals; and (iii) company approvals to proceed with development. 
Specific contingencies preventing the classification of contingent
resources at the Company's oil sands properties as reserves include
further reservoir studies, delineation drilling, facility design,
preparation of firm development plans, regulatory applications and
company approvals. Development is also contingent upon successful
application of SAGD and/or Cyclic Steam Stimulation (CSS) technology
in carbonate reservoirs at Saleski, which is currently under active
development. Positive and negative factors relevant to the estimate
of oil sands resources include a higher level of uncertainty in the
estimates as a result of lower core-hole drilling density. 
Best estimate contingent resources of 13.1 billion boe is comprised
of 12.0 billion barrels of oil and 6.6 tcf of natural gas. Of the
total, 10.8 billion boe was economic at year-end 2012. Contingent
resources are reported as the working interest volumes and Husky's
working interest varies in the properties. The properties assigned
contingent resources are Western Canada gas resource plays and EOR
projects, Lloydminster thermal projects, Northwest Territories
conventional gas, oil sands, East Coast offshore and Asia Pacific
gas. 
Reserves replacement ratio is determined by taking the Company's
yearly incremental proved reserve additions divided by the yearly
upstream gross production. The two-year average reserves replacement
ratio for 2011 and 2012 was determined based on the sum of the
Company's 2011 and 2012 incremental proved reserves additions divided
by the sum of the Company's 2011 and 2012 upstream gross production.
The estimates of reserves and resources for individual properties in
this presentation may not reflect the same confidence level as
estimates of reserves and resources for all properties, due to the
effects of aggregation. The Company has disclosed its total reserves
in Canada in its 2012 Annual Information Form dated March 8, 2013,
which reserves disclosure is incorporated by reference herein.  
Note to U.S. Readers 
The Company reports its reserves and resources information in
accordance with Canadian practices and specifically in accordance
with National Instrument 51-101, "Standards of Disclosure for Oil and
Gas Disclosure", adopted by the Canadian securities regulators.
Because the Company is permitted to prepare its reserves and
resources information in accordance with Canadian disclosure
requirements, it uses certain terms in this document, such as "best
estimate contingent resources," that U.S. oil and gas companies
generally do not include or may be prohibited from including in their
filings with the SEC. 
All currency is expressed in Canadian dollars unless otherwise noted.
Contacts:
Husky Energy Inc. - Investor Inquiries:
Rob McInnis
Manager, Investor Relations
403-298-6817 
Husky Energy Inc. - Media Inquiries:
Mel Duvall
Corporate Communications
403-513-7602
 
 
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