Husky Energy has signed with CNOOC a Production Sharing Contract (PSC) for a new exploration block offshore China.

Block 16/25 is located in the Pearl River Mouth Basin, about 150 kilometres southeast of the Hong Kong Special Administrative Region.

The Company expects to drill two exploration wells on the shallow water block during the 2018 timeframe, in conjunction with two planned exploration wells at the nearby exploration Block 15/33.

Husky is the operator of both blocks during the exploration phase, with a working interest of 100 percent. In the event of a commercial discovery, its partner CNOOC Limited may assume a participating interest of up to 51 percent during the development and production phase.

About Husky Energy

Husky Energy (TSX: HSE) is a Canadian-based integrated energy company. It is headquartered in Calgary, Alberta, Canada and its common shares are publicly traded on the Toronto Stock Exchange under the symbol HSE.

About CNOOC

China National Offshore Oil Corporation ("CNOOC"), the largest offshore oil & gas producer in China, is a state-owned company operating directly under the State-owned Assets Supervision and Administration Commission of the State Council of the People's Republic of China. Founded in 1982 and headquartered in Beijing, CNOOC has evolved from an upstream oil & gas company to an international energy company with promising core businesses and a complete industrial chain.