John C.S. Lau, president and CEO of Husky Energy Inc., announced that the company has received approval from the federal and provincial governments and regulators regarding the North Amethyst development near the White Rose oil field, 350 kilometers southeast of St. John's, Newfoundland and Labrador, Canada.
The North Amethyst oil field is the first of three satellite oil pools to be developed adjacent to the White Rose oil field in the Jeanne d'Arc Basin, with first oil planned for late 2009 or early 2010. The North Amethyst oil pool was identified by delineation drilling in 2006 and is estimated to contain 70 million barrels of proved plus probable reserves with 28.2 million barrels proved and 41.8 million barrels probable at December 31, 2007.
Husky plans to develop this and other nearby oil pools through a series of subsea tie-backs to the SeaRose FPSO (Floating Production, Storage and Offloading vessel). An application to develop the South White Rose Extension tie-back received government approval in September 2007, and evaluation of the resource potential at the West White Rose Extension continues.
"Husky has already secured a drilling rig and reached agreement with the province on royalties and benefits. Approval from the federal and provincial governments was the last major requirement to bring this project forward," said Mr. Lau. "This approval will allow us to proceed with the North Amethyst development, and to continue to execute our growth strategy for Canada's East Coast."
A project team based in St. John's continues to advance engineering, design and future development for all three tie-ins. Husky dredged a glory hole at the North Amethyst development site in the summer of 2007, and plans to commence development drilling later in 2008. A total of 11 wells are presently anticipated for the North Amethyst satellite tie-back.
Husky Energy is the operator of the White Rose oil field and satellites, and holds a 68.875% working interest in the White Rose Satellite tie-back project. Petro-Canada holds a 26.125% share of the project, while the Government of Newfoundland and Labrador through the province's energy corporation, has an equity stake of 5%.
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