Husky Energy raises estimate of White Rose offshore oilfield

Husky Energyhas increased its estimate of the recoverable resources in the White Rose offshore oilfield by 190 million barrels.

The company said Thursday that a well drilled in the southwestern section of the field is estimated to contain a recoverable resource of 40 million to 100 million barrels of oil, with a likely estimate of 70 million barrels.

Earlier in the year, Husky said another well, drilled in the western section of the White Rose field, led it to raise its estimate of recoverable resources in this area to between 50 million and 200 million barrels of oil, with a likely estimate of 120 million barrels.

The White Rose field is about 350 kilometres east of St. John's and has an estimated life of 12 to 15 years, according to Husky.

"We are very encouraged by the results of the 2006 delineation program," Husky CEO John Lau said in a release.

"The results of this delineation program, along with the strong performance of the current development, should allow White Rose to significantly extend its production plateau," he said.

Lau added that the two exploratory wells are a few kilometres away from the SeaRose floating oil production and shipping vessel.

Husky Energy is the operator of the White Rose oil field and holds a 72.5 per cent working interest in the project. Petro-Canada holds the remaining 27.5 per cent.

In June, the Canada-Newfoundland Offshore Petroleum Board revised its official estimates for the combined fields on the Grand Banks. The offshore regulator said the fields appear to hold 2.751 billion barrels of oil up 696 million barrels from previous estimates.

Three fields are now in production off Newfoundland's east coast. Hibernia, discovered in 1979,pumped its first oil in 1997, while Terra Nova followed suit in 2002. White Rose began production in 2005.

Development of what would be the province's fourth field, Hebron, has been stalled because of a stalemate between the field's owners and the Newfoundland and Labrador government. Premier Danny Williams has insisted on an equity stake and a richer royalty regime for the Hebron field.

Husky shares were off 48cents, ending at$76.17on the TSX.