In 2006, Husky continued to focus on natural gas exploration and development in the deeper, less mature portions of the Basin, and shallow and natural gas from coal opportunities in the Plains region. The Company has 1,400 drillable natural gas locations that could provide up to 350 million cubic feet per day (mmcf/d) during the next two years.
In May 2005, Husky became operator of a lease containing the Summit Creek discovery (known as B-44) in the Central Mackenzie Valley area of the Northwest Territories. It was the first significant oil discovery in the region since 1920. Two zones were flow tested showing combined rates of 20 million cubic feet per day and 6,000 barrels per day of light oil and condensate.
Husky drilled two wells in the Summit Creek area during the winter of 2005-06 and announced a natural gas discovery at the Stewart D-57 well, in May 2006. The D-57 discovery, drilled on Tulita District Land Corporation Freehold Block M-38, was drilled to a depth of 3,147 metres, 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 five million cubic feet per day, confirming a hydrocarbon bearing column of at least 50 metres.
The second well, Summit Creek K-44, was an appraisal and deeper pool exploration drilled on Exploration License (EL) 397, 1.4 kilometres northeast of the B-44 discovery well. The well was drilled to a depth of 3,130 metres, cased to total depth and suspended. The results are being evaluated.
During the second quarter of 2006 Husky was awarded EL 441 (Block CMV-6), flanking the eastern boundary of EL 397. The licence area contains extensions of several plays from EL 397, including the natural gas play confirmed by the Stewart D-57 well. The licence requires a work commitment of $10.5 million over the next four years. The Company holds interests in approximately 3,275 square kilometres in the Central Mackenzie Valley area.
Husky and its partners have decided to defer further exploration drilling until the winter of 2007-08. This will allow for full incorporation of new seismic data into the prospect mapping that is currently underway.
Western Canada Conventional Production & Exploration Fact Sheet | 
