Husky Energy, Norsk Hydro Canada Announce Oil Discovery

Wednesday, December 06, 2006
Husky Energy Inc. Norsk Hydro Canada Oil & Gas say they have found new energy deposits near the Terra Nova oilfield off the East Coast. Calgary-based Husky and Norwegian-owned Norsk Hydro said late Tuesday that offshore drilling in the Jeanne d'Arc Basin off the coast of Newfoundland and Labrador had found hydrocarbons near Terra Nova, Canada's second major offshore field after Hibernia. The companies said the West Bonne Bay F-12 well is about 320 kilometres southeast of St. John's. Under a farm-in agreement with Norsk Hydro, Husky drilled the well to a depth of 4,666 metres and also drilled a sidetrack well to determine the size of the oil reservoir. Both wells showed energy deposits in the Upper Hibernia formation, the companies said. Further analysis is continuing to estimate the size of the energy deposit or if it's big enough to support commercial production.

Husky is one of Canada's major integrated oil companies, with conventional production in western Canada, an oilsands project in northern Alberta, operations in the South China Sea and a string of gasoline stations in the West. Husky is also growing rapidly off the East Coast, where it operates the White Rose offshore project and is a partner with Petro-Canada in the Terra Nova and White Rose fields. Source: CBC News

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