In announcing its second quarter results, Husky Energy Inc. demonstrated progress in advancing its strategic objectives with first oil from North Amethyst offshore Eastern Canada while signaling a heightened focus on addressing near-term production growth.

Since taking over as CEO of Husky Energy on June 1, 2010, Asim Ghosh has commenced a comprehensive review of the Company’s operations and business strategies. “Husky’s business strategies have historically delivered strong results for shareholders and the Company has a tremendous portfolio of assets to fuel mid to long-term growth and continue delivering shareholder value. However, a key goal is delivering near-term production growth. We are rebalancing Husky’s portfolio to direct a measure of capital to low cost, high return projects to achieve this near-term goal while maintaining the integrity of our long-term objectives.”

A summary of second quarter results, together with recent key highlights, is as follows:

•Cash flow of $806 million and Net Earnings of $266 million •Total production before royalties averaged 283,900 boe/day •2010 production guidance adjusted to 285,000–295,000 boe/day •Capital expenditures were $638 million •First oil production from the North Amethyst field offshore Canada’s East Coast was achieved in 30 months from project sanction •Acquisition of 10,000 plus boe/day of natural gas production and 37 mmboe of proved reserves •Encouraging results of the first appraisal well from the Liuhua 29-1 natural gas field further demonstrating the quality of the Liuhua reservoir and supporting the Company’s efforts to build a material oil and gas business in South East Asia •Sunrise Energy Project Phase One remains on track for full project sanction in late 2010 •U.S. Downstream results of $14 million loss impacted in the quarter by the continuation of weak realized refining margins •The stronger Canadian dollar in the quarter relative to the U.S. dollar reduced the benefit of higher benchmark commodity prices year over year.

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