Husky's production in 2008 was 355,900 barrels of oil equivalent per day, compared with 376,600 barrels of oil equivalent per day in 2007. Crude oil and natural gas liquids production was 256,800 barrels per day, compared with 272,700 barrels per day in 2007. This reflects the severe ice pack and iceberg winter conditions which delayed drilling and temporarily suspended production off the East Coast of Canada. Due to a weakening natural gas price and demand, gas production was reduced to 594 million cubic feet per day as compared with 623 million cubic feet per day in 2007.
In the White Rose satellite developments off Canada's East Coast, engineering and sub-sea system work progressed well. Results of the drilling of delineation wells at North Amethyst and West White Rose confirmed the Company's estimate of 210 million barrels of proved plus probable plus possible reserves (28 million barrels proved, 62 million barrels probable and 120 million barrels possible) in these two fields. Reserve estimates are as of December 31, 2008 and Husky has a 68.875 percent working interest. In December, the Mizzen exploration well (Husky 35 percent working interest) in the Flemish pass offshore Newfoundland commenced drilling.
Husky's oil sands projects are progressing. Pending a government and regulatory amendment approval, the partners in the Sunrise Oil Sands Project are expected to review project sanction by the end of 2009 and move to final approvals in the first half of 2010. The Sunrise Oil Sands Project is in an optimization phase to simplify the scope and to take advantage of the recent downturn in the demand for goods and services. Production at the Tucker Project ramped up to approximately 4,800 barrels per day at the year end and work continues on reservoir optimization. Additional drilling will most likely be delayed until market conditions improve.
Offshore China, the deep water drilling rig West Hercules began drilling the first appraisal well on its Liwan discovery in November 2008. Husky plans to drill three more delineation wells on the Liwan discovery as well as additional exploration wells on nearby prospects in 2009. The shallow water rig Frontier Discoverer, began drilling an exploration well in the South China Sea in January 2009. In Indonesia, Husky has contracted the drilling rig Transocean Adriatic XI to drill two shallow water exploration wells in the East Bawean II block.
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