Husky oil find boosts Newfoundland

Gary Park

Petroleum News Calgary correspondent

Husky Energy has lifted sagging spirits offshore Newfoundland by reporting a find of up to 30 million barrels of oil and 250 billion cubic feet of natural gas in its White Rose project.

They are in addition to expected recoverable reserves of 250 million barrels, which form the basis of a C$2 billion project which is scheduled to start production by late 2005 or early 2006 and peak at 92,000 barrels per day.

Husky owns 72.5 percent of White Rose, with the balance held by Petro-Canada.

Husky President and Chief Executive Officer John Lau said the increase in gas reserves to more than 2.3 trillion cubic feet “will enhance the possibility” of long-term gas development for the region.

Bolstered by earlier drilling results, Husky has claimed White Rose will mark the beginning of a gas industry for the Grand Banks, prompting the Newfoundland government to urge operators to start tapping gas reserves by 2007.

But the industry doubts that is a realistic target, given the absence of any serious plans for developing estimated discovered reserves of 5 trillion cubic feet.