Husky Energy's Reserves Increase Along With Production Growth

NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: Husky Energy Inc. 
TSX SYMBOL:  HSE 
MARCH 10, 2014 
Husky Energy's Reserves Increase Along With Production Growth 
CALGARY, ALBERTA--(Marketwired - March 10, 2014) -  
Highlights:  
/T/ 
--  Average proved three-year reserves replacement ratio of 172 percent, 
excluding economic factors 
--  1.3 billion barrels of oil equivalent (boe) total proved reserves before 
royalties 
--  Proved reserves life index of 11.1 years, up from 10.3 in 2011 and 10.8 
in 2012  
/T/ 
Husky Energy's (TSX:HSE) reserves growth outpaced its production in 2013
as a result of the addition of reserves in its Oil Sands business, the
full-scale development of the Ansell liquids-rich gas resource play and
increased heavy oil recovery from thermal developments in Western Canada. 
Husky has increased its 2014 production guidance to the range of 330,000 to
355,000 boe/day and remains on track to achieve its production growth rate
target of five to eight percent from 2012 through 2017.  
The Company has realized an average proved reserves replacement ratio over the
past three years of 172 percent, excluding economic factors. Including economic
factors, the average proved three-year reserves replacement ratio is 154
percent, ahead of the five-year average target of 140 percent per year. The
reserves replacement ratio in 2013 was 166 percent, excluding economic factors
(164 percent including economic factors such as the low gas price environment
during the year.) 
Reserves growth reflects a broad portfolio of assets, which provide for organic
growth without dependency on acquisitions and a flexible timeline for optimal
development. 
At the end of the year in 2013, the Company had total proved reserves before
royalties of 1.3 billion barrels of oil equivalent (boe), probable reserves of
1.9 billion boe and best estimate contingent resources of 13.2 billion boe. The
Company's Oil Sands portfolio was responsible for 11.6 billion boe of the
best estimate contingent resources total. 
/T/ 
2013 Reserves Reconciliation (1)                      
----------------------------------------------------------------------------
 (Figures represented in                                                    
  millions of barrels of                                                     
oil equivalent)             Proved               Probable    TOTAL 
---------------------------------------------------------------------------- 
Developed  Undeveloped  Total                     
---------------------------------------------------------------------------- 
Dec. 31, 2012     729         463      1,192     1,723     2,915 
---------------------------------------------------------------------------- 
Production    (114)         0       (114)       0       (114) 
---------------------------------------------------------------------------- 
Acquisitions      0           1         1         3         4   
---------------------------------------------------------------------------- 
Divestitures     (1)          0        (1)        0        (1)  
---------------------------------------------------------------------------- 
Additions (2)     34          108       142       212       354  
---------------------------------------------------------------------------- 
Transfers     97         (97)        0       (73)      (73)  
---------------------------------------------------------------------------- 
Technical Revisions     50          (2)       48         2        50   
---------------------------------------------------------------------------- 
Economic Factors     (3)          0        (3)       (5)       (8)  
---------------------------------------------------------------------------- 
Dec. 31, 2013     792         473      1,265     1,862     3,127 
---------------------------------------------------------------------------- 
(1) Reserves are based on Canadian National Instrument 51-101 (NI 51-101)    
rules, which require the use of year-end forecast prices                
(2) Additions = Discoveries + Extensions + Improved Recovery                 
/T/ 
SELECT HIGHLIGHTS: 
Foundation 
/T/ 
--  Proved reserves in Western Canada, including Heavy Oil and excluding Oil 
Sands, were 872 million boe as of December 31, 2013.  
--  New heavy oil thermal projects and improved recovery from existing heavy 
oil thermal developments resulted in the booking of an additional 127 
million barrels in probable reserves.  
--  Additional drilling locations at the Ansell liquids-rich gas resource 
play in Western Canada contributed to the booking of an additional 32 
million boe of natural gas and natural gas liquids in proved undeveloped 
reserves. Plans are being advanced to increase production from Ansell to 
approximately 30,000 boe/day in the next few years. 
/T/ 
Growth Pillars 
/T/ 
--  Additional drilling locations at the Sunrise Energy Project added a 
further 39 million barrels (Husky W.I.) of proved undeveloped bitumen 
reserves in 2013. Sunrise has estimated proved plus probable plus 
possible reserves of 3.7 billion barrels of bitumen (0.44 billion 
proved, 2.40 billion probable and 0.86 billion possible) as of December 
31, 2013. Husky has a 50 percent working interest in the reserves.  
--  Sanction of the South White Rose extension in the Atlantic Region in 
2013 added an additional seven million barrels of light oil in proved 
undeveloped reserves.  
/T/ 
A full reporting of the Company's oil and natural gas reserves data for
the year ended December 31, 2013 has been included in the Company's Annual
Information Form (AIF), which was filed with securities regulators on March 6,
2014 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 news release 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 news release are forward-looking and not
historical facts.  
Some of the forward-looking statements 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
document include, but are not limited to, references to:  
/T/ 
--  with respect to the business, operations and results of the Company 
generally: the Company's 2014 production guidance; the Company's five-    year average target reserves replacement ratio; and the Company's 
ability to achieve its production growth rate target through 2017; and  
--  with respect to the Company's Western Canadian oil and gas resource 
plays: the planned increase in production from the Company's Ansell 
resource play in the next few years.  
/T/ 
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 reserve, resource 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, 2013
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 stated, reserve and resource estimates in this document have
an effective date of December 31, 2013 and represent Husky's share. Unless
otherwise noted, historical production numbers given represent Husky's
share.  
The Company uses the terms 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.  
Reserve replacement ratios for a given period are determined by taking the
Company's incremental proved reserve additions for that period divided by
the Company's upstream gross production for the same period. Forecast
reserve replacement ratios for a given period are calculated by taking the
forecast proved reserve additions for those periods divided by the forecast
gross production for the same periods.  
The Company has disclosed possible reserves. Possible reserves are those
additional reserves that are less certain to be recovered than probable
reserves. It is unlikely that the actual remaining quantities recovered will
exceed the sum of proved plus probable plus possible reserves. There is a 10
percent probability that the quantities actually recovered will equal or exceed
the sum of proved plus probable plus possible reserves.  
The estimates of reserves for individual properties may not reflect the same
confidence level as estimates of reserves for all properties, due to the
effects of aggregation. The Company has disclosed its total reserves in Canada
in its Annual Information Form for the year ended December 31, 2013, which
reserves disclosure is incorporated by reference herein.  
The Company has disclosed best-estimate contingent resources of 13.2 billion
boe, which is comprised of 12.0 billion bbls of crude oil and 6.5 tcf of
natural gas. Of the total, 11.0 billion boe is economic at year-end 2013.  
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.  
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, N.W.T. conventional gas, oil sands, Atlantic
Region and Asia Pacific gas. 
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
for unrisked contingent resources; (ii) regulatory approvals; and (iii) Company
and partner 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.  
Specific contingencies preventing the classification of contingent resources at
the Company's Atlantic Region discoveries as reserves include additional
exploration and delineation drilling, well testing, facility design,
preparation of firm development plans, regulatory applications, Company and
partner approvals. Positive and negative factors relevant to the estimate of
Atlantic Region resources include water depth and distance from existing
infrastructure. 
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
"possible reserves" and "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. 
-30-
FOR FURTHER INFORMATION PLEASE CONTACT: 
Investor Inquiries:
Dan Cuthbertson
Manager, Investor Relations
Husky Energy Inc.
403-298-6817
or
Media Inquiries:
Mel Duvall
Manager, Media & Issues
Husky Energy Inc.
403-513-7602 
INDUSTRY:  Energy and Utilities - Oil and Gas  
SUBJECT:  OEX 
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-0- Mar/10/2014 11:00 GMT
 
 
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