TMX group

CALGARY, Aug. 21 /CNW/ - Mr. John C.S. Lau, President & Chief Executive
Officer, Husky Energy Inc., is pleased to advise that construction on the
Tucker Oil Sands Project is complete and that steam injection into the
reservoir commenced on August 20th.
First oil is anticipated in November of this year, with peak production
of more than 30,000 barrels per day expected to be achieved within two years
after commencement. During the 35-year Tucker project life, Husky expects to
produce approximately 350 million barrels of bitumen. The facility will employ
approximately 40 full time workers.
Construction on the project, 30 kilometres northwest of Cold Lake,
Alberta, began in the fall of 2004 and at its peak employed approximately 700
on-site workers from several contractors. Total project capital costs are
below the budget of $500 million. Husky used a lump sum turnkey contract for
the Central Processing Facility, which amounted to approximately 60 percent of
the total project capital costs.
"Tucker is in close proximity to Husky's Cold Lake pipeline system and
heavy oil upgrader in Lloydminster, Saskatchewan making it an attractive
integrated project," said Mr. Lau. "I wish to congratulate the Husky project
execution team and its contractors in completing the work on time and under
budget, given the cost pressures and wet weather of 2005."

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.

Cautionary Note Regarding Forward-looking Statements or Information -
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. In particular, in this news release
forward-looking statements include references to Tucker peak production timing
and volumes and Tucker project life and production. 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 development
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.