CALGARY, ALBERTA, May 31 (MARKET WIRE) —
John C.S. Lau, President & Chief Executive Officer of Husky Energy Inc.
(TSX: HSE), is pleased to announce that Husky Oil China Ltd., a wholly
owned subsidiary of Husky Energy, has completed drilling and successful
testing of the first appraisal well at the Liuhua 29-1 discovery on Block
29/26 in the South China Sea with encouraging results.

The West Hercules deepwater drilling rig drilled the Liuhua 29-1-2 well
to a total vertical depth of 2,930 metres below sea level. The well was
drilled and tested in a water depth of 765 metres on the Liuhua 29-1
field, which was discovered in January 2010 in the South China Sea.

“This first appraisal well tested natural gas at an equipment
restricted rate of 55 million cubic feet per day with indications that
the well’s future deliverability could be 60 – 70 million cubic feet per
day,” said Mr. Lau. “The results from this well demonstrate the
quality of the Liuhua reservoir. Further appraisal drilling planned for
later this year will be required, to increase our understanding of the
recoverable resource and provide us with the necessary reservoir
characterization and data to prepare a plan of development for the
field.”

The Liuhua 29-1 field is the Company’s third significant deepwater gas
discovery in Block 29/26 in the South China Sea. The Liuhua 29-1 field is
located about 43 kilometres northeast of the Liwan 3-1 field, the
Company’s first major discovery in Block 29/26 and approximately 20
kilometres northeast of the Liuhua 34-2 field.

Husky expects plans of development for the Liwan 3-1 and Liuhua 34-2
fields to be submitted to regulatory authorities later in 2010.
Furthermore, the plan of development of Liuhua 29-1 will be submitted
when ready and will incorporate the results of the additional appraisal
drilling that will be required.

The first two fields in Block 29/26 – namely Liwan 3-1 and Liuhua 34-2
fields will be developed in parallel, with first gas production targeted
in 2013. Gas production from the Liuhua 29-1 field will subsequently
share common gas processing and transportation infrastructure.

The West Hercules drilling rig is currently commencing the drilling of
another exploration well – Liwan 5-2-1 in Block 29/26 prior to returning
to Liuhua 29-1 to drill a second appraisal well, later in the year.

Husky has been exploring offshore China since 2002. Husky signed a
Petroleum Contract for Block 29/26 in 2004, which following two separate
land relinquishments is 2,230 square kilometres in area. In addition,
Husky holds a 40 percent net working interest in a production block at
the Wenchang oil field and 100 percent working interest in two other
exploration blocks offshore China. Under the Petroleum Contract, CNOOC
Limited has the right to participate in any field development projects
for up to 51 percent working interest.

Husky Energy is an integrated energy-related company headquartered in
Calgary, Alberta, Canada. Husky Energy is a publicly traded company
listed on the Toronto Stock Exchange under the symbol HSE. More
information is available at www.huskyenergy.com.

FORWARD LOOKING INFORMATION

Certain statements in this press release are forward-looking statements
or information (collectively “forward-looking statements”),
within the meaning of the applicable securities legislation. 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 result,” “are expected to,” “will
continue,” “is anticipated,” “estimated,”
“intend,” “plan,” “projection,”
“could,” “vision,” “goals,”
“objective” and “outlook”) are not historical facts
and may be forward-looking and may involve estimates, assumptions and
uncertainties which could cause actual results or outcomes to differ
materially from those expressed in the forward-looking statements. In
particular, this news release includes forward-looking statements
relating to the future deliverability of the appraisal well, the stated
intention to complete further appraisal drilling later this year, the
timing for submission of plans of development and the timing for
development of Husky’s three natural gas fields in Block 29/26 in the
South China Sea and expected first production. Although Husky believes
that the expectations reflected by the forward-looking statements
presented in this press release are reasonable, Husky’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 Husky 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. Husky’s Annual Information Form 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 which are incorporated herein by reference. Except as
required by applicable securities laws, 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.

Contacts:
Husky Energy Inc. – Investor Inquiries
Sharon Murphy
General Manager, Corporate Communications &
Investor Relations
403-298-6096

Husky Energy Inc. – Investor Inquiries
Patrick Aherne
Manager, Investor Relations
403-298-6817

Husky Energy Inc. – Media Inquiries
Graham White
Corporate Communications
403-298-7088
www.huskyenergy.com

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