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Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B



TSX:HSE.PR.B - Post by User

Post by Nawaralsaadion Oct 04, 2011 12:58am
277 Views
Post# 19115221

Article on Sunrise

Article on Sunrise

How many ways do they not love Tucker? The folks atHusky Energy Inc. say there are about 500 things they would dodifferently with their first oilsands project, according to a reportfrom Barclays Capital on Monday.

On a recent tour of Husky’s under-construction Sunriseoilsands project in northern Alberta, the U.S. investment bank reportedits analyst was told that management had compiled a list of 500 lessonslearned from Tucker, rated one of the worst performing in situ oilsandsprojects.

“Management seems confident about the project’s progressas it remains on budget and beyond schedule (approximately 85 drillingdays ahead of plans),” says the report.

“It is important to note that management clearlyrealizes the continuing investor skepticism and hesitance to jump onSunrise’s development, particularly after the poor understanding andincorrect assumptions associated with the Tucker oilsands operations.”

The report goes on to note that the key learnings fromTucker include truly understanding the quality of the reservoir beforecommitting to the project. Plus it hopes to build in more efficienciesand cost controls with Sunrise.

Husky brass saysteam-oil ratio at Sunrise — the numberof barrels of steam required to produce each barrel of oil

— will be inthe range of 3.0 to 3.5, more like the admired  Suncor Firebag operationthan the reviled Tucker, with its SOR of 5.0 to 6.0.

“At Sunrise, management plans to use slant welltechnology and will be using larger casings in expectation of highproduction. Have plans to capture the increased production capacity ifSOR is less than 3.0,” the Barclay’s analyst adds.

Last November, Husky confirmed it would proceed with the $2.5-billionfirst phase of the Sunrise steam-assisted gravity drainage oilsandsproject, being developed in a 50-50 partnership with BP.

It is designed to produce 60,000 barrels of bitumen per day by 2014 but could grow to 200,000 bpd by 2020 with more phases.

Sunrise is estimated to have more than 3.7 billion barrels of proved, probable and possible bitumen reserves.

Barclays said Husky expects it to take about 18 monthsto reach the expected SOR of 3.0 once wells are up and running. Itexpects oilsands to contribute 100,000 bpd of new production by 2020from Sunrise Phase 1 and 2.

https://blogs.calgaryherald.com/2011/10/03/mistakes-at-tucker-fuel-sunrise-plan-for-husky/

Regards,

Nawar

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