Husky Greenlights Another Sask SAGD Project w/11 Projects Producing

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According to a news release in December, Husky Energy says it will proceed with yet another Lloydminster SAGD project. This is merely 2 months after completing its latest facility in the heavy oil play, where it add the 10,000-bbl/d Spruce Lake East project to its Saskatchewan SAGD growth pipeline.

The Company uses repeatable, modular construction templates to build its Lloyd thermal projects. Eleven projects are now producing, including the Rush Lake 2 development which came online in 2018, adding 10,000 bbls/day of production.

Construction is underway at the 10,000 bbls/day Dee Valley and Spruce Lake Central Lloyd thermal bitumen projects, which are scheduled for startup in the fourth quarter of 2019 and in 2020. Site clearing has begun at the 10,000 bbls/day Spruce Lake North project, with first production expected around the end of 2020. Three additional 10,000 bbls/day thermal bitumen projects have been sanctioned.

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Construction of newly-sanctioned Spruce Lake East is likely to start in mid-2020; it’s now one of three additional 10,000-bbl/d projects with corporate approved to proceed. That brings Husky’s total to 17 Saskatchewan SAGD projects in development.

The company expects its Saskatchewan thermal oil production to average 77,000 bbls/d in 2018, increasing to 135,000 bbls/d in 2020.

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Husky will provide a more detailed 2019 production and capital guidance update in the first quarter, following resolution of the proposed acquisition of MEG Energy.

Jobs in their Lloydminster location can be found here.

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