Husky Energy Inc. (Husky) is a Canadian-based energy and energy-related company headquartered in Calgary, Alberta. Husky has oil and gas operations in Canada, the United States and offshore China, Indonesia and Greenland. Husky employs approximately 4,000 people and has a market value of approximately CDN $26 billion.

Husky is listed on the Toronto Stock Exchange under the symbol HSE, and is included in the S&P/TSX Composite, S&P/TSX Capped Energy Index, and S&P/ TSX 60 indices.

Operations
Husky's operations can be divided into three distinct business segments:

Upstream
Upstream includes the exploration, development and production of crude oil, bitumen and natural gas in Canada, the United States and offshore China, Indonesia and Greenland.

Midstream
Midstream operations include the upgrading of heavy crude oil into premium synthetic crude oil, pipelines, gas storage, power cogeneration, and the marketing of crude oil, natural gas liquids, sulphur and petroleum coke. Significant assets include a heavy oil upgrader at Lloydminster, Saskatchewan, a pipeline system, storage assets of 3.3 million barrels, a 50 per cent interest in a 215-megawatt cogeneration facility at Lloydminster, Saskatchewan, and a 90-megawatt power generation facility at Rainbow Lake, Alberta, gas storage capacity, treating and gathering systems, and commodity marketing.

Downstream
Downstream comprises the refining, marketing and distribution of gasoline, diesel, asphalt, ethanol and ancillary services in Canada and the United States. Core assets include a refinery in Lima, Ohio (USA), an asphalt refinery in Lloydminster, Saskatchewan, a light oil refinery at Prince George, British Columbia, 50 per cent interest in a refinery in Toledo, Ohio, and a network of more than 570 retail outlets in Canada.

Upstream Operations

Western Canada Conventional Production
Husky has oil and gas leases on approximately 26,000 square kilometres in Western Canada and the Northwestern United States, with plenty of opportunity for new reserve additions from exploration and development.

Heavy Oil
Husky has been a pioneer in the development and production of heavy oil and remains one of Canada's dominant players. The Company's position is enhanced by synergies with its nearby heavy oil upgrader and asphalt refinery, and leases on 8,000 square kilometres of landholdings.

Oil Sands
The oil sands of northern Alberta are part of Husky's growth areas. The Company has more than 4,000 square kilometres in the Athabasca, Cold Lake and Peace River areas containing more than 44 billion barrels of petroleum initially in place.

Husky's first oil sands project, Tucker in the Cold Lake area, holds an estimated 1.27 billion barrels of resource. Steam injection commenced in late August 2006 and production started in late November 2006.

The Sunrise Oil Sands Project is an oil sands development in the Athabasca region jointly owned by Husky and BP PLC. Husky estimates that the Sunrise oil sands lease holds an estimated 3.7 billion barrels of bitumen reserves (2.0 billon barrels of probable reserves and 1.7 billion barrels of possible reserves). Husky is moving forward Phase 1, which will produce 60,000 barrels a day of bitumen starting in 2014.

Canada's East Coast
Husky is very active in oil and natural gas production and exploration offshore the coast of the province of Newfoundland and Labrador. The Company is the majority owner (72.5 per cent) and operator of the White Rose oil field and has a 12.51 per cent interest in the Terra Nova oil field, as well as in a number of smaller fields in the central part of the Jeanne d'Arc Basin.

Husky holds working interests in 22 significant discovery areas and Exploration Licences in the Basin totaling 15,000 square kilometres. These significant discovery areas and exploration licences provide the basis for additional exploration prospects and development opportunities for Husky.

Greenland
Husky has three exploration licences offshore Greenland. The Company has an 87.5 per cent interest in two blocks covering 21,000 square kilometres and a 43.75 per cent interest in a third block covering 13,000 square kilometres. In November 2009, Husky completed the acquisition of 2,200 square kilometre 3-D program over Block 7 and Block 5. This survey is the first 3-D seismic survey conducted offshore Greenland and utilizes a new “Geostreamer” technology.

South East Asia
Husky's first venture in China was the 2002 acquisition of a 40 percent interest in the Wenchang oil fields located in the western Pearl River Mouth Basin, approximately 300 kilometres south of Hong Kong and 135 kilometres east of Hainan Island. Husky's total landholdings in the South and East China Seas have grown to over 26,500 square kilometres.

Husky is participating in a natural gas development and production project on Block 29/26 in the South China Sea. The initial Liwan 3-1 discovery was made in 2006 and since that time appraisal work has confirmed its status as the largest discovered deepwater gas field offshore China.

The potential of the Liwan project was enhanced with a significant new discovery in 2009 when an exploration well near the Liwan field encountered an excellent quality reservoir.

The front end engineering design (FEED) for the Liwan deepwater development is at an advanced stage and the newly discovered field will be tied into the planned offshore infrastructure. First gas production is targeted for the 2013 timeframe. Husky and CNOOC have established a joint marketing group to sell production from Liwan.

Husky Energy and CNOOC Ltd each have a 50 per cent equity interest in the Madura Strait Production Sharing Contract (PSC) offshore Indonesia covering 2,795 square kilometres. Husky and CNOOC Ltd. will jointly develop the Madura BD gas and natural gas liquids field located offshore East Java, Indonesia.

Husky holds a 100 per cent interest in the East Bawean II PSC and in the North Sumbawa ll PSC, offshore Indonesia, and will continue to focus on exploration and drilling activities in Indonesia. Husky’s total holdings in Indonesia are 12,108 square kilometres.

Midstream Operations

Upgrading
Husky's heavy oil upgrading facility at Lloydminster, Saskatchewan, has a throughput capacity of 82,000 barrels per day and processes heavy oil feedstock into premium quality synthetic crude oil. The Upgrader achieves a very high yield of light synthetic as it uses both coking and hydrocracking. The Upgrader processes the heavy oil into light (32-34o API), sweet (0.1 per cent sulphur versus conventional light at 0.3 to 0.5 per cent) and low-nitrogen (0.04 per cent) synthetic crude oil, which can be further refined into premium-quality transportation fuels.

Infrastructure
An important component of Husky's heavy oil operations is its 2,050-kilometre heavy oil pipeline system. As part of its operations, the Company owns, operates and leases 38 billion cubic feet of natural gas storage capacity, and has a 50 per cent ownership interest in electricity cogeneration facilities at its Lloydminster heavy oil upgrader and at its Rainbow Lake natural gas processing plant.

Commodity Marketing
Husky is a major marketer of its own and third-party production volumes of crude oil, natural gas, natural gas liquids, sulphur, and petroleum coke. Husky sells the equivalent of close to one million barrels of oil per day to customers in North America and internationally, and manages transportation on behalf of third parties.

Downstream Operations

Wholesale, Commercial and Retail Marketing
Husky and Mohawk-branded fuels are marketed through 570 retail outlets, travel centres and bulk distributors. In late 2009, Husky acquired 98 retail outlets in Ontario, Canada.

Oil Refining and Ethanol Processing
Husky owns and operates a 160,000 barrels per day refinery in Lima, Ohio. Options are being examined to convert the refinery to process heavier feed stocks. In its joint venture with BP, Husky swapped half of its Sunrise oil sands development for half of BP’s 160,000 barrels per day refinery in Toledo, Ohio.

The Prince George light oil refinery produces all grades of low-sulphur gasoline and diesel fuels, a propane and butane mix, and heavy fuel oil.

Husky is Western Canada's largest producer of ethanol with two 130 million litres per year ethanol facilities; at Lloydminster, Saskatchewan and Minnedosa, Manitoba. Adding grain-derived ethanol to gasoline promotes fuel combustion, raises octane levels, prevents water from freezing in fuel lines, and reduces emissions from vehicles, thus reducing greenhouse gas emissions.

Asphalt Refining and Marketing
Husky owns and operates a 28,000 barrel per day refinery at Lloydminster that processes heavy oil into asphalt, used for paving and building products. The high quality of the asphalt produced at the Lloydminster refinery has allowed Husky to achieve a 38 per cent market share in the western Canadian paving market. Forty per cent of the refinery production is exported to the United States.

Husky Energy Inc.
707-8th Avenue SW
Box 6525, Station D
Calgary, Alberta
Canada T2P 3G7
Telephone: (403) 298 6111
Fax: (403) 298 7464
Website: www.huskyenergy.com

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