Husky Energy Inc. (Husky) is a Canadian-based energy and energy-related company headquartered in Calgary, Alberta. Husky operates in Western Canada, offshore the East Coast of Canada, the United States and holds interests in Greenland, the South and East China Seas, and Indonesia. Husky employs more than 5,000 people and has a market value of approximately CDN $26 billion.

Husky commenced trading on The Toronto Stock Exchange under the symbol HSE, on 28 August 2000 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 Western Canada, offshore the Canadian East Coast, off Greenland, in the South and East China Seas, offshore Indonesia and other international areas. The Western Canadian assets contribute the majority of the Company's earnings and cash flow, providing a strong base to fund Husky's long-term development projects.

Midstream
Midstream operations include the upgrading of heavy crude oil into premium synthetic crude oil, pipeline transportation, gas storage, power, cogeneration, and the marketing of crude oil, natural gas liquids, sulphur and petroleum coke. Significant assets include the Lloydminster heavy oil upgrader with a processing capacity of 82,000 barrels per day, a 2,050-kilometre pipeline system, storage assets of 2.5 million barrels distributed into three major terminals, a 50 per cent interest in a 215-megawatt cogeneration facility at Lloydminster 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, and a network of retail outlets. Core assets include the Lima (Ohio, U.S.A.) refinery, the Lloydminster asphalt refinery, the Prince George light oil refinery, 50 per cent interest in a refinery in Toledo (Ohio, USA), and a network of 500 retail outlets in Canada from British Columbia to Ontario and the Yukon Territory.

Upstream Operations

Western Canada Conventional Production
Husky has oil and gas leases on approximately 30,000 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 Canada's dominant player. 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 one of Husky's long-term growth areas. The Company has more than 2,200 square kilometres in the Athabasca, Cold Lake and Peace River areas that contain 44.3 billion barrels of bitumen in place.

Husky's first two oil sands projects are at Tucker and Sunrise. Construction on the Tucker Oil Sands Project was completed in August 2006, and achieved first oil at the end of 2006. The Tucker Project, is estimated to have a 35 years project life and peak production of more than 30,000 barrels per day. Regulatory approval for the phased development of the Sunrise Oil Sands Project was received in December 2005. Husky estimates that the Sunrise Project could produce 3.2 billion barrels of bitumen over a 40 years life. Development of Sunrise will be expedited by a 2007 joint partnership with BP in which Husky swapped a 50 per cent interest in Sunrise for a 50 per cent interest in BP’s Toledo Refinery.

Canada's East Coast and Greeland
Husky is very active in oil and natural gas production and exploration on the Grand Banks, 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 16 significant discovery areas and Exploration Licences in the Basin totaling 15,360 square kilometres.

In 2007, Husky was awarded 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. Seismic testing was carried out in 2008.

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 25,644 square kilometres.

At its significant hydrocarbon discovery at Liwan 3-1-1, in Block 29/26, in the South China Sea, Husky has secured a deep water drilling rig for a three year term. Based on current interpretation of the 2-D seismic and the Liwan 3-1-1 well results, the discovery could contain a potential recoverable resource of four to six trillion cubic feet of natural gas, making it one of the largest natural gas discoveries offshore China.

CNOOC Ltd. recently acquired a 50 per cent equity interest in Husky's Madura Strait Production Sharing Contract offshore Indonesia covering an area of 2,795 square kilometres. Husky Energy and CNOOC Ltd. will jointly develop the Madura BD gas and natural gas liquids field located offshore East Java, Indonesia.

Husky holds a 100 percent interest in the East Bawean II PSC, offshore Indonesia and will continue to focus on exploration and drilling activities in Indonesia. Husky recently completed a 1,410 square kilometre 3-D seismic program over this block in preparation for a two well exploration program in 2009. Additionally, Husky was recently awarded 100 percent interest in North Sumbawa ll Production Sharing Contract. Husky's total holdings in Indonesia are 12,108 square kilometers.

Midstream Operations

Upgrading
Husky's heavy oil upgrading facility at Lloydminster, Saskatchewan 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 (32-34^o 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

The Upgrader has achieved throughput capacity of 82,000 barrels of synthetic crude oil per day following the completion of debottlenecking projects in 2007.

Infrastructure
An important component of Husky's heavy oil operations in Lloydminster 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 both its own and third-party production volumes of crude oil, natural gas, natural gas liquids, sulphur, and petroleum coke. Husky sells the equivalent of 1.1 million barrels of oil per day to a large variety of end users across North America, and manages transportation on behalf of third parties.

Downstream Operations

Wholesale, Commercial and Retail Marketing
Husky and Mohawk-branded fuels are marketed through 500 retail outlets, travel centres and bulk distributors in Western Canada. In 2007, Husky marketed more than 3.2 billion litres of gasoline and diesel fuel.

Oil Refining and Ethanol Processing
Husky made significant additions to its refining capacity n 2007. It purchase of a 160,000 barrel per day light oil refinery in Lima, Ohio for US$1.9 billion plus working capital. 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 150,000 barrels per day refinery in Toledo, Ohio.

The 12,000 barrels per day Prince George light oil refinery produces all grades of low-sulphur gasoline and diesel fuels, a propane and butane mix, and heavy fuel oil. It set a production record of 3.8 million barrels in 2007.

Husky opened a 130 million litres per year ethanol plant at Lloydminster, Saskatchewan in 2006 and a 130-million litre per year facility at Minnedosa, Manitoba at the end of 2007. The plants make Husky Western Canada's largest producer of ethanol. 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 27,000 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 35 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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