Husky Signs Heads of Agreement for Sale of Madura BD Gas

Mr. John C.S. Lau, President & Chief Executive Officer of Husky Energy has signed a Heads of Agreement (HOA) between Husky Oil (Madura) Ltd. and three separate companies for the sales of gas from the Madura BD Field in Indonesia. The agreements were signed with PT Parna Raya, PT Inti Alasindo Energy, and PT Perusahaan Gas Negara Tbk (PGN).

The HOA forms the basis of terms for the Gas Sales Agreement (GSA) which Husky is in the process of finalizing. Husky is also in the process of negotiating an extension to the Madura Strait Production Sharing Contract with the Government of Indonesia.

The Madura BD Field, located offshore East Java in Indonesia, is estimated to contain contingent resources of 515 billion cubic feet of natural gas and 23 million barrels of condensate. When development of the field is completed, production is estimated at 100 million cubic feet per day of sales gas and 6,500 barrels per day of condensate. The natural gas will be processed through a floating production unit and will flow via a 60 kilometre pipeline for delivery onshore to East Java. The gas will ultimately be sold to industrial customers in the East Java area and the condensate will be shipped to markets in South East Asia by shuttle tanker.

Husky Oil (Madura) Ltd., which is 100 percent owned by Husky Energy Inc., is the operator of the Madura Strait Production Sharing Contract and holds a 100 percent working interest in the project.

Husky Energy is a Canadian based, integrated energy and energy-related company headquartered in Calgary, Alberta. Husky Energy is publicly traded on the Toronto Stock Exchange under the symbol HSE.