Husky Energy Inc. has agreed to sell royalty interests in heavy oil properties in Western Canada for $163-million, marking its second deal in two weeks.

The royalty interest deal represents about 1,700 barrels of oil equivalent per day of expected production in 2016 to Freehold Royalties Ltd., Husky said in a statement Monday. The proceeds "include $163-million in cash and other considerations," including Husky receiving royalty and working interests in heavy oil properties around Lloydminster.

Husky said it will use the cash to shore up its balance sheet.

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"This transaction allows the company to obtain a greater value on the royalty income stream from these lands as compared to the value potentially received as part of the sale of the underlying assets," Husky said in a statement. The royalty stakes and working interests that Husky will receive as part of the deal will be folded into its "Lloyd thermal portfolio."

The company last week sold oil and gas processing assets nearly Lloydminster for $1.7-billion to Hong Kong-based Cheung Kong Infrastructure Holdings and Power Assets Holdings Ltd. Husky held on to a 35-per-cent stake in the facilities, which include about 1,900 kilometres of pipeline. Lloydminster straddles the Alberta and Saskatchewan border, east of Edmonton.

Calgary-based Husky, controlled by Hong Kong billionaire Li Ka-shing, lost $458-million in the first quarter. (Mr. Li controls the buyers in last week's $1.7-billion deal).

Husky wants to sell assets churning out about 60,000 barrels of oil and gas per day in Western Canada. "Work continues to advance in regard to the disposition of select oil and natural gas properties in Western Canada," the company said in its statement. Toronto-Dominion Bank advised Husky on the Freehold deal.