CALGARY – Husky Energy says it expects to start producing oil from its Edam East heavy oil project in Saskatchewan this spring.
Edam East is the first of three new thermal projects that the Calgary-based company expects to begin operating this year.
Husky (TSX:HSE) says the three steam-assisted operations will add a total of 24,500 barrels a day of production by the end of 2016, including 10,000 from Edam East.
That project has begun steam operations and will begin producing its first oil early in the second quarter, Husky says.
Husky also says its heavy oil sites will have among the lowest operating costs in the industry.
The company is aiming to have 40 per cent of overall production come from projects with low sustaining capital costs by the end of 2016, compared with eight per cent in 2010.