Husky Encouraged by Shale Gas Exploration

John C.S. Lau, President and Chief Executive Officer of Husky Energy, announced that the Company has completed and tested two exploratory wells to evaluate the shale gas potential in the Montney and Doig formations in Northeast British Columbia, Canada.

The exploration drilling results are very encouraging. The Graham b-10-D / 94-B-9 well flowed gas from the Doig formation at a rate of 2.9 million cubic feet per day. The Cypress a-31-B / 94-B-15 well flowed gas from the Montney at a rate of 5.4 million cubic feet per day and from the Doig at 2.9 million cubic feet per day.

The land position covers an area of approximately 11,500 acres close to Husky infrastructure and has all season access.

"The recoverable resource potential from these wells are substantial and among the best vertical tests from the Doig/Montney play," Lau said. "These results are encouraging for Husky to expand its strategy in unconventional resource play development in this area."

Husky plans to drill the first horizontal well on this land in 2010. The pace of development depends on well test results and the market conditions of natural gas.

Husky also announced that it has acquired an additional 12,500 net acres of land in the Doig Montney play in Northeast British Columbia, increasing Husky's total land position in this region to more than 24,000 net acres.

"The acquisition enhances Husky's position in the Doig/Montney play, which has become one of North America's most promising plays for natural gas development," said Lau.