OREANDA-NEWS. Husky Energy has rejuvenated its legacy Heavy Oil business over the past four years through thermal developments. Thermal production has risen from 18,000 bbls/day in 2010 to 45,000 bbls/day in 2014 and is expected to rise to 80,000 bbls/day by the end of 2016.

An updated resource assessment has provided a comprehensive map to further identify and develop additional thermal projects. The independent evaluation conducted by Sproule Unconventional Limited has now significantly increased the overall best estimate contingent resources in the region from 107 million barrels to 1.9 billion barrels, of which 54 percent has the potential to be recovered using thermal technology.

Total heavy oil initially in place is estimated to be 17 billion barrels, of which 16 billion barrels are discovered heavy oil initially in place.

Production Rising at Liwan Gas Project as Liuhua 34-2 Field Comes Online

The Liwan Gas Project in the South China Sea continues to ramp up production, with fixed-price sales gas volumes expected to average between 290 to 320 million cubic feet per day (mmcf/day gross) in 2015. This compares to average gross production of 200 to 220 mmcf/day in the third quarter of 2014.

The Liuhua 34-2 well has been tied into the main Liwan field infrastructure and production has commenced.

Husky's net share of production from Liwan in 2015 is expected to be 160 to 195 mmcf/day, with an additional 5,000 to 7,000 boe/day of liquids.

Steaming operations began earlier this month at the in situ Sunrise Energy Project in northern Alberta. Steam is now being injected into wells with first oil expected towards the end of the first quarter of 2015.

Phase 1 production is expected to ramp up to full capacity of 60,000 bbls/day (30,000 bbls/day net to Husky) over a two-year period.

Husky will continue to execute on its balanced growth strategy in 2015. This includes a focus on safe operations, a strong balance sheet, a strong dividend and steady production and reserves growth from a diverse and flexible portfolio.

The Company expects to deliver a series of high quality return projects in 2015, while staging its mid to longer-term projects to further manage risk and provide reliable steady earnings and cash flow.