FIELD ACTIVITIES / Husky Oil to resume Drilling on the Grand Banks
ST. JOHN'S, Feb. 26 /CNW/ - Husky Oil Operations Ltd. (Husky) announced
today plans to resume drilling activities on the Grand Banks and the opening
of a regional office in St. John's to support expanded operations in the
Newfoundland offshore oil industry.
Husky's East Coast holdings include interests in 11 Significant Discovery
Areas (SDAs) and one Exploration License. Husky acts as operator of five of
the SDAs and the Exploration License. Principal SDA working interests include
Terra Nova (17.5 per cent), White Rose (43.8 per cent), and North Ben Nevis
(42.2 per cent). Husky holds a 50 per cent working interest in the Cape Race
Exploration License.
''We are pleased to be commencing delineation and development programs
offshore Newfoundland,'' commented John C. S. Lau, Chief Executive Officer of
Husky Oil Ltd. ''Husky views the exploration for and development of Canada's
East Coast offshore reserves as an important growth area for Husky's future.
The commitment of Husky and its partners is a clear demonstration of our
confidence in the potential of the Terra Nova, White Rose, North Ben Nevis and
Cape Race plays and other significant discovery licenses. We look forward to
a long-term and mutually beneficial association with the people of
Newfoundland and Labrador.''
He added, ''I would particularly like to thank Premier Brian Tobin,
Energy Minister Chuck Furey and their team for the positive relationship they
have established with us in this phase of our association.''
''I am pleased that Husky Oil is a significant player in Newfoundland and
Labrador's developing oil and gas industry,'' said the Premier. ''Their
participation in projects such as Terra Nova and White Rose and through the
opening of a regional office in the province demonstrates their long-term
commitment to the people of the province and our petroleum industry.
Government will continue to work with Husky Oil representatives to build on
the positive relationship established thus far and encourage further
investment and benefits for the province through the promotion of its
resources.''
As operator of the White Rose SDA, Husky is focused on planning for
delineation of the White Rose E-09 discovery. Delineation is the process of
drilling wells to further assess productivity and the size of the field.
Information acquired through delineation is used by owner companies to
determine the commercial viability of field development.
Husky is the majority owner in the White Rose project (43.8 per cent),
along with Talisman Energy Inc. (19.2 per cent), Petro-Canada (17.5 per cent),
Gulf Canada Resources Limited (8.2 per cent), Norsk Hydro Canada Oil and Gas
(7.5 per cent), and Denison Mines Ltd. (3.8 per cent).
A major oil and gas discovery in the Jeanne D'Arc Basin, White Rose is
located 350 km off the east coast of Newfoundland, close to the Hibernia and
Terra Nova fields. Preliminary exploration suggests that White Rose has
estimated crude oil reserve potential in excess of 250 million barrels.
Delineation drilling is presently scheduled to begin in September 1998
using the Global Marine rig currently contracted for a multi-company program
in the Jeanne D'Arc Basin. Delineation operations will continue in 1999 with
the Sedco operated Bill Shoemaker and are expected be completed by 2001. Owner
companies will evaluate the delineation results and assess project viability
before considering an application to the Canada-Newfoundland Offshore
Petroleum Board for development.
Husky's exploration interests are focused on the company-operated Cape
Race Exploration License which is adjacent to the Husky-operated North Ben
Nevis SDA. The Cape Race - North Ben Nevis play is located between the
Hibernia and Terra Nova fields. Husky expects to drill the Cape Race prospect
before the end of 2000.
Husky and its contractors are committed to a program that brings maximum
benefits to Canada and Newfoundland. The new regional office is in the Scotia
Centre, in St. John's with Chris Bailey as manager East Coast operations. In
conjunction with the office opening, Husky is announcing plans to support the
establishment of a Petroleum Engineering Resource Center at Memorial
University of Newfoundland. The Company is having a reception to officially
open the office today from 3 - 6:00 p.m.
Husky Oil Operations Ltd. is a wholly-owned subsidiary of Husky Oil Ltd.
Husky Oil Ltd. is a Canada-based integrated oil and gas company headquartered
in Calgary, Alberta. The Company's operations include the exploration for, and
the development of, crude oil and natural gas, as well as the production,
purchase, transportation, upgrading, refining and marketing of crude oil,
natural gas, natural gas liquids, sulphur and petroleum coke, and the
marketing of refined petroleum products. Husky Oil Ltd. is a privately held
company, controlled by the Hong Kong-based Li Ka-Shing Group of companies. |
