The asset acquisition provides Husky approximately 6,000 barrels of oil production per day, 12 million barrels of oil proven reserves and 8.5 million barrels of oil probable reserves. The reserve estimates are as of November 1, 2009.

John Lau, president & CEO of Husky Energy, said: “This is a strategic acquisition in a region that is a very profitable and highly productive business segment.

“We will capitalize on our technical expertise and take advantage of operational synergies by integrating these assets into the company’s extensive heavy oil operations.”

Husky has acquired 16,700 acres (26 sections) of undeveloped land with the purchase. This is expected to compliment the company’s heavy oil resource base by adding approximately one billion barrels of discovered petroleum initially in place.

Husky said that the Lloydminster area of Alberta and Saskatchewan is a core area for its business. The company’s heavy oil assets are concentrated in a producing region covering more than 8,000 sq.km.