Husky Energy Inc. (TSX:HSE) said oil and started flowing Monday from its North Amethyst field offshore Newfoundland and Labrador.
The project is the first satellite field development at Husky's White Rose project.
Husky president and chief executive John Lau called it a major milestone for the company.
"Developing North Amethyst and the other satellite fields will complement the existing reservoir and extend the production life of White Rose," Lau said in a statement.
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Husky said North Amethyst holds an estimated 90 million barrels of proven, probably and possible reserves.
Production from North Amethyst is expected to rise to roughly 37,000 barrels of oil per day as the remaining wells are drilled and brought on line.
Husky is the operator of White Rose and its satellite fields with a 72.5 per cent working interest in the main White Rose field and a 68.9 per cent interest in the satellites, which include North Amethyst.
Suncor Energy (TSX:SU) holds 27.5 per cent interest in the core White Rose field, and 26.1 per cent interest in the satellite fields, while the government of Newfoundland and Labrador holds a five per cent stake in the satellite fields.
Husky has refinery interests in Canada and the United States, heavy oil operations in Western Canada, offshore production in Atlantic Canada and a chain of retail fuel stations.
The integrated energy company — which produces and refines oil and sells fuels through its Husky branded stations, mainly in Western Canada — has about 4,600 employees.
The company is also a major natural gas producer in Canada and has been growing rapidly in southeastern Asia.