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CALGARY, ALBERTA -- (Marketwire) -- 03/08/13 -- Highlights:
-- Average proved two-year reserves replacement ratio of 175 percent, excluding economic revisions-- 1.2 billion barrels of oil equivalent (boe) total proved reserves before royalties-- Reserves life index of 10.8 years, up from 10.3 in 2011
Husky Energy (TSX: HSE) continued to add more proved reserves compared to production in 2012, reflecting increased heavy oil recovery from its thermal projects and final regulatory approval of the Liwan Gas Project in the Asia Pacific Region.
Reserves growth has consistently outpaced production, with an average proved reserves replacement ratio over the past two years of 175 percent. Including economic revisions, the average proved two-year reserves replacement ratio was 149 percent, ahead of the five-year average target of 140 percent per year.
The Company is adding to its reserves while continuing to advance a rich pipeline of projects as it targets an annual production growth rate of five to eight percent through 2017.
At year end 2012, Husky had total proved reserves before royalties of 1.2 billion boe, probable reserves of 1.7 billion boe and best estimate contingent resources of 13.1 billion boe. The Company's Oil Sands portfolio was responsible for 11.6 billion boe of the best estimate contingent resources total.
2012 Reserves Reconciliation(1)---------------------------------------------------------------------------- Proved Probable TOTAL---------------------------------------------------------------------------- Developed Undeveloped Total---------------------------------------------------------------------------- Dec. 31, 2011 757 415 1,172 1,679 2,851---------------------------------------------------------------------------- Production (110) 0 (110) 0 (110)---------------------------------------------------------------------------- Acquisitions 1 0 1 0 1---------------------------------------------------------------------------- Divestitures (1) 0 (1) 0 (1)---------------------------------------------------------------------------- Additions (2) 25 107 132 84 216---------------------------------------------------------------------------- Transfers 44 (44) 0 (20) (20)---------------------------------------------------------------------------- Technical Revisions 30 (8) 22 (6) 16---------------------------------------------------------------------------- Economic Revisions (17) (7) (24) (14) (38)---------------------------------------------------------------------------- Dec. 31, 2012 729 463 1,192 1,723 2,915----------------------------------------------------------------------------- Reserves are based on Canadian National Instrument 51-101 (NI 51-101) rules, which require the use of year-end forecast prices.(1) Figures are represented in millions of barrels of oil equivalent(2) Additions = Discoveries + Extensions + Improved Recovery
