Husky ramps up production with Marathon acquisition

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CALGARY, Alta. — Husky Energy has purchased Marathon Canada in a US$588 million deal that will expand Husky’s oil production capabilities.

The deal was announced yesterday, and also included the western Canadian assets of Marathon International Petroleum Canada sister company to Marathon Canada.

Marathon produces about 27,000 barrels of oil per day. Also yesterday, Husky then agreed to sell some of the Marathon Canada oil and gas properties to an unnamed third company for US$320 million. The properties included in that transaction amount to about 7,500 barrels per day.

Husky, however, will maintain the properties in northern and southern Alberta and northeastern B.C., which will allow the company to increase oil production by about 19,500 barrels per day while adding reserves of 39.8 million barrels.

“The purchase of Marathon Canada will complement our existing western Canada property base,” Husky president and CEO John Lau said following the announcement. “Husky will continue to pursue investment opportunities to increase production and reserves consistent with our growth strategy. It is anticipated that this transaction will increase earnings and cash flow and will be funded from Husky’s internal cash flow and available facilities.”

– with files from C.P.

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