Heavy Oil

Husky pioneered the production of heavy oil in Western Canada. It is rejuvenating its historic foundation with an increased focus on thermal technologies and horizontal wells to tap into the significant resource in place.

The majority of Husky's heavy oil assets are located in the Lloydminster region of Alberta and Saskatchewan, where the Company holds approximately two million acres. Husky's integrated Lloyd value chain includes pipeline, storage and blending capacity, the Lloydminster Upgrader and Asphalt Refinery, which allow the Company to capture refined product pricing for its heavy oil and bitumen production. Enhanced oil recovery (EOR) technologies are further unlocking the potential of this resource.

Husky's heavy oil production is approximately 135,000 barrels per day, including approximately 74,000 bbls/day of production from its thermal projects. The Company expects to add more than 24,500 bbls/day of thermal production by the end of 2016 as it further advances its low-risk, modular construction templates and thermal technologies. This includes new thermal projects at Edam East, Vawn and Edam West expected to come online in 2016, and, increased production at the Tucker Thermal Project, from a new sustaining well pad and the Colony formation.

Thermal steam-assisted gravity drainage (SAGD) projects are producing at Rush Lake, Pikes Peak South, Paradise Hill, Pikes Peak, Bolney/Celtic and Sandall.

Primary recovery methods, predominately cold heavy oil production with sand (CHOPS), and horizontal well technology are also used for Husky's heavy oil operations.