Husky boosts Newfoundland offshore hopes with $C350M spending pledge

Husky Energy has given a major lift to hopes for offshore Newfoundland, pledging to spend C$350 million in the region this year.

Having picked up more than 38,000 acres in the Jeanne d’Arc Basin at a recent land sale and brought its White Rose oil project on stream ahead of schedule and under budget, Husky is now ready to tackle a fourth well at White Rose and conduct drilling to delineate reserves in a second White Rose pool.

“We believe there is strong potential for development of further oil and gas reserves in Jeanne d’Arc,” Husky President John Lau said in a news release, noting that his company is now one of the basin’s largest landholders.

He said the White Rose infrastructure is a platform for growth and adding to the land portfolio, underscoring Husky’s “confidence and long-term commitment” to offshore Newfoundland.

The company has two production licenses and several exploration licenses as the basis for an active drilling program, depending on the availability of rigs.

—Gary Park