Husky Energy Makes Gas Discovery in Central Mackenzie Valley

Husky Energy and its partners have made a hydrocarbon discovery at the Stewart D-57 location in the Central Mackenzie Valley, Northwest Territories, Canada.

Stewart D-57 was drilled on Tulita District Land Corporation Freehold Block M-38. The well was drilled to a depth of 3,147 meters, cased to total depth and suspended. On open-hole testing, natural gas flowed from two Cretaceous intervals to the surface at a combined rate of 5 million cubic feet per day, confirming a hydrocarbon-bearing column of at least 50 meters. This is the first successful Cretaceous hydrocarbon discovery in the Central Mackenzie region.

Husky also concluded its winter drilling program in the Summit Creek area approximately 26 kilometers northwest of the Stewart D-57 discovery. The program consisted of the Summit Creek K-44 well, an appraisal and deeper pool exploration well adjacent to the Summit Creek B-44 discovery well. Summit Creek K-44 was drilled on Exploration License EL 397, 1.4 kilometers northeast of the B-44 discovery well. The well was drilled to a depth of 3,130 meters, cased to total depth and suspended. The results are being evaluated. The Summit Creek B-44 well was drilled on EL 397 in the spring of 2004 and tested at combined rates of approximately 20 million cubic feet per day of natural gas and in excess of 6,000 barrels per day of light oil and condensate.

The Company and its partners plan to acquire 200 kilometers of low-impact heliportable 2-D seismic in the Summit Creek area this summer. The data will be used to determine sites for potential future winter exploration drilling programs.

Husky and its partners acquired Block CMV-6 offsetting EL 397 at the May 9, 2006 land sale. The Block was acquired for a work commitment of $10.5 million over the next four years. With the acquisition of CMV-6, Husky and its partners have land holdings of 3,275 square kilometers in the Central Mackenzie Valley area.

Husky is the operator and holds a working interest of approximately 29 percent in EL 397 and a working interest of approximately 26 percent in M-38. The remaining joint venture partners are Northrock Resources: a wholly owned subsidiary of Pogo Producing Company, EOG Resources Canada Inc., Pacific Rodera Energy Inc., and International Frontier Resources Corporation.