Husky Energy’s reserves growth outpaced its production in 2013 as a result of the addition of reserves in its Oil Sands business, the full-scale development of the Ansell liquids-rich gas resource play and increased heavy oil recovery from thermal developments in Western Canada.
Husky, based in Canada, has increased its 2014 production guidance to the range of 330,000 to 355,000 boe/day and remains on track to achieve its production growth rate target of five to eight percent from 2012 through 2017.
The Company has realized an average proved reserves replacement ratio over the past three years of 172 percent, excluding economic factors. Including economic factors, the average proved three-year reserves replacement ratio is 154 percent, ahead of the five-year average target of 140 percent per year. The reserves replacement ratio in 2013 was 166 percent, excluding economic factors (164 percent including economic factors such as the low gas price environment during the year.)
Reserves growth reflects a broad portfolio of assets, which provide for organic growth without dependency on acquisitions and a flexible timeline for optimal development.
At the end of the year in 2013, the Company had total proved reserves before royalties of 1.3 billion barrels of oil equivalent (boe), probable reserves of 1.9 billion boe and best estimate contingent resources of 13.2 billion boe. The Company’s Oil Sands portfolio was responsible for 11.6 billion boe of the best estimate contingent resources total.
Proved reserves in Western Canada, including Heavy Oil and excluding Oil Sands, were 872 million boe as of December 31, 2013.
New heavy oil thermal projects and improved recovery from existing heavy oil thermal developments resulted in the booking of an additional 127 million barrels in probable reserves.
Additional drilling locations at the Ansell liquids-rich gas resource play in Western Canada contributed to the booking of an additional 32 million boe of natural gas and natural gas liquids in proved undeveloped reserves. Plans are being advanced to increase production from Ansell to approximately 30,000 boe/day in the next few years.
Additional drilling locations at the Sunrise Energy Project added a further 39 million barrels (Husky W.I.) of proved undeveloped bitumen reserves in 2013. Sunrise has estimated proved plus probable plus possible reserves of 3.7 billion barrels of bitumen (0.44 billion proved, 2.40 billion probable and 0.86 billion possible) as of December 31, 2013. Husky has a 50 percent working interest in the reserves.
Sanction of the South White Rose extension in the Atlantic Region in 2013 added an additional seven million barrels of light oil in proved undeveloped reserves.