Husky Energy Inc. (TSX:T.HSE, Stock Forum) said its major strategic priorities have been advanced over the second quarter of 2012, underpinned by good operational results across the company.
According to the press release, first oil was achieved at the 8,000 barrels per day at Pikes Peak South and 3,000 barrels per day at the Paradise Hill heavy oil thermal projects, which are expected to ramp up by the end of the year.
The 3,500 barrels per day at the Sandall thermal project was sanctioned, with production expected in 2014.
Overall, second-quarter production averaged 281,900 barrels per day compared to 311,600 barrels per day in the second quarter of 2011.
The lower production was caused by the SeaRose and Terra Nova Floating Production Storage and Offloading (FPSO) offstations that were factored into annual production guidance.
However, the SeaRose is expected to return to operations with production ramping up in the third quarter as per schedule. The Terra Nova offstation program began June 8 and is expected to last approximately 21 weeks.
Furthermore, the company achieved significant milestones across its growth pillars with the completion of the shallow water platform jacket at the Liwan Gas Project in the Asia Pacific Region, the construction of approximately half of the field facilities at the Sunrise Energy Project and the award of contracts to evaluate potential extension options at the White Rose field in the Atlantic Region.
In addition, Husky continues to evaluate and advance its large pipeline of projects in Western Canada as it expands its focus to unconventional resource plays.
Moreover, the company realized significant progress in the second quarter in repositioning the heavy oil business to more long-life thermal projects and horizontal wells.
Husky is one of Canada’s largest integrated energy companies.
On Tuesday morning, Husky was trading at $25.30 a share. The company has a market cap of $24.4 billion, based on 966 million shares outstanding. The 52-week high and low was $27.19 and $20.63 respectively.