Husky Energy continues to ramp up Sunrise output

CALGARY, Alberta -- Husky Energy is continuing to ramp up production at the Sunrise Energy Project in northeast Alberta, the company announced Monday.

Sunrise began producing bitumen in mid-March. Twenty-five well pairs are now on production, with steaming under way on 43 of 55 well pairs. Strong reservoir and facility performance has contributed to increasing production volumes averaging 5,000-5,500 bpd at the end of June, ahead of plan.

"We continue to follow a steady, deliberate timetable as we increase production at Sunrise, and this approach is delivering better than expected results," said CEO Asim Ghosh. "Sunrise is one of many low sustaining capital projects in our near-term portfolio that is designed to provide increasing value through and beyond the current low oil price environment."

Sunrise production is expected to increase to full capacity of about 60,000 bpd (30,000 bpd net to Husky) around the end of 2016. The project is an important element in the plan to add approximately 85,000 bpd of new production by the end of 2016, a portion of which is anticipated to offset natural declines across the company's overall portfolio.

Husky is the operator of Sunrise, which is approximately 60 km northeast of Fort McMurray.

The company has a 50% working interest in the steam-assisted gravity drainage project with BP, which operates the jointly-owned BP-Husky Toledo refinery. Bitumen from Sunrise can be processed at the Toledo refinery.