OREANDA-NEWS. Husky Energy has started commercial steam operations at the 10,000 barrels per day (bbls/day) Rush Lake heavy oil thermal project in Saskatchewan, approximately eight weeks ahead of schedule. Like the Company's other thermal projects, Rush Lake is expected to ramp up to full production in a short time period.

"Rush Lake is the latest in a series of long life, low sustaining capital thermal projects we are advancing in our heavy oil business," said CEO Asim Ghosh. "Five years ago, we had two heavy oil thermal projects in production and by the end of 2016, we will have ten projects onstream."

Current production from thermal projects is approximately 44,000 bbls/day. Including Rush Lake, heavy oil thermal production is expected to add another 34,500 bbls/day over the next 18 months.

* The 10,000 bbls/day Edam East project is scheduled to come onstream in the third quarter of 2016.
* The 3,500 bbls/day Edam West thermal development has been reconfigured to a capacity of 4,500 bbls/day and is set to begin production in the fourth quarter of 2016.
* The 10,000 bbls/day Vawn project is expected to start up in the fourth quarter of 2016.

The projects build on the Company's strong track record of using proven thermal technologies and modular, repeatable construction templates to access heavy oil deposits in the Lloydminster region. With low operating costs, good netbacks and low execution risk, these projects offer good returns even in a low price environment.