OREANDA-NEWS. Husky Energy is prudently advancing its resilient thermal production portfolio as its fully integrated Downstream business captures incremental profits from the wellhead through to the refinery rack.

"In 2010 we set out our balanced growth strategy, which included the decision to remain an integrated company with a diverse portfolio of low sustaining capital projects," said CEO Asim Ghosh.

"Thermal developments have long production lifespans, low sustaining capital costs and are supported by Husky's Downstream assets, strengthening the Company's resiliency in a low oil price environment.

"In a lower for longer world, where oil price is being increasingly determined by the strength in supply, these lower sustaining capital projects become even more strategic," added Ghosh.

Husky expects to add about 35,000 barrels per day (bbls/day) of new Lloydminster heavy oil thermal production by the end of 2016, including the Rush Lake Project which achieved first oil in July. Rush Lake surpassed its nameplate capacity of 10,000 bbls/day just four weeks after startup of production.

An additional four 10,000 bbls/day thermal projects have been identified for development in the 2017 to 2021 timeframe, including a second phase at Rush Lake.

Further thermal momentum is being added from the Sunrise Energy Project, which is now producing about 10,000 to 11,000 bbls/day (gross), compared to the 5,500 to 6,000 bbls/day reported in late July. The project continues to be ahead of plan and is expected to ramp up to full production of about 60,000 bbls/day (30,000 bbls/day net to Husky) around the end of 2016.