Husky Energy Announces 180% Reserves Replacement Ratio

CALGARY, ALBERTA--(Marketwire - March 8, 2012) - Husky Energy (TSX:HSE) has achieved a proved reserves replacement ratio (before royalties) of 180 percent for the year ended December 31, 2011. The reserves replacement ratio exceeded the Company's target of an annual reserves replacement ratio of 140 percent and demonstrates steady progress in developing and enhancing its portfolio.

"While we focus on delivering near-term results, we're building the foundation for future growth," said CEO Asim Ghosh. "We're pleased with the progress we made in 2011 in achieving our key performance targets and surpassing our reserves replacement goal."

Reserves Replacement highlights include:

• A reserves life index of 10.3 years.
• An increase of 8.4 percent of total proved oil and natural gas reserves (based on forecast prices), as of December 31, 2011.
• An increase of 18.8 percent of proved and probable reserves, as of December 31, 2011.

2011 Reserves Reconciliation(1)
	Proved									Probable			TOTAL
	Developed			Undeveloped			Total
Dec. 31, 2010	681			401			1,081			1,317			2,399
Production	(114	)		0			(114	)		0			(114	)
Acquisitions	109			3			112			29			141
Divestitures	(3	)		(9	)		(12	)		(3	)		(14	)
Additions (2)	33			95			128			377			505
Transfers	40			(40	)		0			(17	)		(17	)
Technical Revisions	18			(8	)		10			(13	)		(3	)
Economic Revisions	(7	)		(26	)		(33	)		(12	)		(45	)
Dec. 31, 2011	757			416			1,172			1,678			2,851
% Increase/Decrease	11.2			3.7			8.4			27.4			18.8

*Reserves are based on Canadian National Instrument 51-101 (NI 51-101) rules, which require the use of year-end forecast prices.

(1) Figures are represented in millions of barrels of oil equivalent

(2) Additions = Discoveries + Extensions + Improved Recovery

Western Canada

Acquisitions in northwestern Alberta and northeastern British Columbia added 112 million boe to proved reserves in Western Canada in 2011. Proved reserves in Western Canada totalled 813 million boe as of December 31, 2011, not including proved reserves from the Tucker oil sands property.

Oil Sands

Additional drilling at the Sunrise Energy Project, an in-situ oil sands project in northern Alberta, added 60 million barrels of bitumen to proved undeveloped reserves. This additional data interpretation also resulted in the transfer of 351 million barrels of bitumen from possible to probable reserves.

Asia Pacific

A gas sales agreement was finalized for production from the Liwan 3-1 field, and the Original Gas In-Place report has been approved by government authorities for the Liuhua 29-1 gas field. Proved and probable reserves from the Liwan Gas Project are expected to be booked in 2012, subject to final regulatory approval of the Overall Development Plan by the Government of China.

Husky and its partner each completed a 10 percent equity stake sale in Husky Oil (Madura) Ltd. to Samudra Energy Ltd. through its affiliate SMS Development Ltd. in January 2011, resulting in a decrease in the Company's Madura reserves. Husky and its partner each hold a 40 percent interest in Husky Oil (Madura) Ltd., with the remaining 20 percent held by SMS Development Ltd.

A full reporting of the Company's oil and natural gas reserves data for the year ended December 31, 2011 has been included in the Annual Information Form (AIF), which was filed with Canadian securities regulators on March 8, 2012 on the System for Electronic Document Analysis and Retrieval (SEDAR). It may be accessed electronically at www.sedar.com

Husky Energy is one of Canada's largest integrated energy companies. It is headquartered in Calgary, Alberta, Canada and is publicly traded on the Toronto Stock Exchange under the symbol HSE and HSE.PR.A. More information is available at www.huskyenergy.com

FORWARD-LOOKING STATEMENTS

Certain statements in this document are forward-looking statements within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended, and forward-looking information within the meaning of applicable Canadian securities legislation (collectively "forward-looking statements"). The Company hereby provides cautionary statements identifying important factors that could cause actual results to differ materially from those projected in these forward-looking statements. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely," "are expected to," "will continue," "is anticipated," "is targeting," "estimated," "intend," "plan," "projection," "could," "aim," "vision," "goals," "objective," "target," "schedules" and "outlook") are not historical facts, are forward-looking and may involve estimates and assumptions and are subject to risks, uncertainties and other factors, some of which are beyond the Company's control and difficult to predict. Accordingly, these factors could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements.

In particular, forward-looking statements in this document include, but are not limited to, references to: with respect to the business, operations and results of the Company generally: the Company's general strategic plans; and with respect to the Company's Asia Pacific Region: expected timing of booking proved and probable reserves from the Liwan Gas Project; and expected timing of regulatory approval for the Overall Development Plan for the Liwan Gas Project.

In addition, statements relating to "reserves" and "resources" are deemed to be forward-looking statements as they involve the implied assessment based on certain estimates and assumptions that the reserves or resources described can be profitably produced in the future.

Although the Company believes that the expectations reflected by the forward-looking statements presented in this document are reasonable, the Company's forward-looking statements have been based on assumptions and factors concerning future events that may prove to be inaccurate. Those assumptions and factors are based on information currently available to the Company about itself and the businesses in which it operates. Information used in developing forward-looking statements has been acquired from various sources, including third-party consultants, suppliers, regulators and other sources.

Because actual results or outcomes could differ materially from those expressed in any forward-looking statements, investors should not place undue reliance on any such forward-looking statements. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the predicted outcomes will not occur. Some of these risks, uncertainties and other factors are similar to those faced by other oil and gas companies and some are unique to Husky.

The Company's Annual Information Form for the year ended December 31, 2011 and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com and the EDGAR website www.sec.gov) describe the risks, material assumptions and other factors that could influence actual results and are incorporated herein by reference.

Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by applicable securities laws, the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for management to predict all of such factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are dependent upon other factors, and the Company's course of action would depend upon its assessment of the future considering all information then available.

Disclosure of Oil and Gas Information

Unless otherwise specified, reserves and resources estimates represent Husky's share and are given with an effective date of December 31, 2011.

The Company uses the term barrels of oil equivalent ("boe"), which is calculated on an energy equivalence basis whereby one barrel of crude oil is equivalent to six thousand cubic feet of natural gas. Readers are cautioned that the term boe may be misleading, particularly if used in isolation. This measure is primarily applicable at the burner tip and does not represent value equivalence at the wellhead.

The 2011 reserve replacement ratio was determined by taking the Company's 2011 incremental proved reserve additions divided by 2011 upstream gross production.