Husky reports start of steam operations at Sunrise oil sands project

Husky Energy, Calgary, reported the start of steam operations at the in situ Sunrise Oil Sands Project in northeastern Alberta.

The project’s Phase 1 includes the development of 60,000 b/d (gross) with two processing plants. The first 30,000-b/d plant is expected to begin production towards the end of first-quarter 2015. The second 30,000-b/d plant is expected to start steaming midyear 2015, with production commencing a few months later. Production is expected to ramp up to full capacity over a 2-year period.

“The production of steam is the last major milestone before first oil,” said Chief Executive Officer Asim Ghosh. “As a longer-life project, Sunrise will deliver steady production and cash flow to support our expansive portfolio of projects.”

Husky is the operator of Sunrise with equal working interest with BP PLC, which operates the jointly owned BP-Husky Toledo refinery.

Sunrise contains estimated reserves of 3.7 billion bbl (440 million proved, 2.4 billion probable, and 860 million possible) as of Dec. 31, 2013. Husky has a 50% working interest in these reserves.

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