TMX group

CALGARY, May 17 /CNW/ - Mr. John C.S. Lau, President & Chief Executive
Officer of Husky Energy Inc., announced today that Husky and its partners have
made a hydrocarbon discovery at the Stewart D-57 location in the Central
Mackenzie Valley, Northwest Territories, Canada.
Stewart D-57 was drilled on Tulita District Land Corporation Freehold
Block M-38. The well was drilled to a depth of 3,147 metres, cased to total
depth and suspended. On open-hole testing, natural gas flowed from two
Cretaceous intervals to the surface at a combined rate of 5 million cubic feet
per day, confirming a hydrocarbon-bearing column of at least 50 metres. This
is the first successful Cretaceous hydrocarbon discovery in the Central
Mackenzie region.
Husky also concluded its winter drilling program in the Summit Creek area
approximately 26 kilometres northwest of the Stewart D-57 discovery. The
program consisted of the Summit Creek K-44 well, an appraisal and deeper pool
exploration well adjacent to the Summit Creek B-44 discovery well. Summit
Creek K-44 was drilled on Exploration License EL 397, 1.4 kilometres northeast
of the B-44 discovery well. The well was drilled to a depth of 3,130 metres,
cased to total depth and suspended. The results are being evaluated. The
Summit Creek B-44 well was drilled on EL 397 in the spring of 2004 and tested
at combined rates of approximately 20 million cubic feet per day of natural
gas and in excess of 6,000 barrels per day of light oil and condensate.
The Company and its partners plan to acquire 200 kilometres of low-impact
heliportable 2-D seismic in the Summit Creek area this summer. The data will
be used to determine sites for potential future winter exploration drilling
programs.
Husky and its partners acquired Block CMV-6 offsetting EL 397 at the
May 9, 2006 land sale. The Block was acquired for a work commitment of
$10.5 million over the next four years. With the acquisition of CMV-6, Husky
and its partners have land holdings of 3,275 square kilometres in the Central
Mackenzie Valley area.
Husky is the operator and holds a working interest of approximately 29
percent in EL 397 and a working interest of approximately 26 percent in M-38.
The remaining joint venture partners are Northrock Resources: a wholly owned
subsidiary of Pogo Producing Company (NYSE: PPP), EOG Resources Canada Inc.
(NYSE: EOG), Pacific Rodera Energy Inc. (TSX-V: PRD), and International
Frontier Resources Corporation (TSX-V: IFR).

Husky Energy is a Canadian based, integrated energy and energy-related
company headquartered in Calgary, Alberta. Husky Energy is publicly traded on
the Toronto Stock Exchange under the symbol HSE.

Certain statements contained in this news release constitute forward
looking statements or information (collectively, "forward looking statements")
within the meaning of applicable securities legislation. These forward looking
statements relate to future events or Husky's future performance. The use of
any of the words "could", "expect", "believe", "will", "projected",
"estimated" and similar expressions and statements relating to matters that
are not historical facts are intended to identify forward looking statements
and are based on Husky's current belief or assumptions as to the outcome and
timing of such future events, and in this news release include plans for
seismic programs. Actual future results may differ materially. Husky's annual
report to shareholders 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, uncertainties and other factors, such
as drilling results, changes in business plans and potential delays or changes
in plans with respect to projects or capital expenditures, that could
influence actual results. Except as required by law, Husky disclaims any
intention or obligation to publicly update or revise any forward looking
statements, whether as a result of new information, future events or
otherwise.