OREANDA-NEWS. Husky Energy is advancing a strong pipeline of long-life, high quality return heavy oil thermal projects. Assuming a flat USD60 West Texas Intermediate (WTI) price over the life of the projects, full cycle rates of return are approximately 15 percent.

New thermals include:
* First oil from the 10,000 bbls/day Rush Lake heavy oil thermal project is planned for the third quarter of 2015.
* The 10,000 bbls/day Edam East thermal project is scheduled to be brought onstream in the third quarter of 2016.
* The 3,500 bbls/day Edam West thermal project is expected to start up in the fourth quarter of 2016.
* The 10,000 bbls/day Vawn thermal development is scheduled to begin production in the fourth quarter of 2016.

Husky continues to build additional flexibility into its Downstream infrastructure to further improve feedstocks, product range and market access.
* Downstream throughputs are expected to be approximately 300,000 bbls/day in 2015.
* The South Saskatchewan gathering system is being extended to accommodate growing heavy oil thermal production in the Lloydminster region.
* A recycle gas compressor at the partner-operated Toledo refinery has been brought online and is expected to improve overall plant performance.
Asia Pacific Region
Production at the Liwan Gas Project offshore mainland China has ramped up. Liwan receives a fixed gas price and provides for a full cycle rate of return of about 10 percent.
* Average gross sales volumes from Liwan in 2015, including Liuhua 34-2, are expected to increase to a range of 290 to 320 mmcf/day compared to 200 to 220 mmcf/day (gross) in the third quarter of 2014.
* Husky's net share of production from Liwan in 2015 is expected to be 160 to 195 mmcf/day plus 5,000 to 7,000 boe/day of liquids.
* Offshore Indonesia, four natural gas projects are being advanced in the Madura Strait and the Company recently awarded a contract for an FPSO (floating production, storage and offloading) vessel to support development of the liquids-rich BD field.

Steam injection has commenced at the Sunrise Energy Project.
* First oil from Plant 1A is expected towards the end of the first quarter of 2015.
* Commissioning continues on Plant 1B, which is forecast to begin steaming in mid-2015, with production following several months later.

Husky is preparing to begin production from the South White Rose satellite extension. Assuming a flat USD 60 WTI price over the life of the project, full cycle rates of return are approximately 15 percent. The Company is also advancing an appraisal program to assess the commercial potential of discoveries in the Flemish Pass.
* South White Rose is scheduled to start up in mid-year 2015, with expected peak production of approximately 15,000 bbls/day (net).
* The Hibernia-formation well beneath North Amethyst is scheduled to begin production in the third quarter of 2015 and ramp up to anticipated peak production of 5,000 bbls/day (net).
* Husky and its partner have commenced an 18-month appraisal and exploration drilling program in the Flemish Pass offshore Newfoundland and Labrador, including the area of the Bay du Nord discovery. Husky holds a 35 percent working interest in the Bay du Nord discovery.