Cen­ovus agrees to sell oil as­sets to White­cap

Medicine Hat News - - FRONT PAGE -

CAL­GARY Cen­ovus En­ergy Inc. (TSX:CVE) says it is sell­ing its ma­jor­ity stake in a Saskatchewan en­hanced-oil re­cov­ery project to Cal­gary-based White­cap Re­sources Inc. (TSX:WCP) for $940 mil­lion.

The deal is the last on a list of four as­set sales the ma­jor oil­sands pro­ducer vowed to com­plete to help pay for its $17.7-bil­lion ac­qui­si­tion of most of the Cana­dian as­sets of Hous­ton-based Cono­coPhillips ear­lier this year.

It has pre­vi­ously agreed to sell its Pal­liser as­sets in south­east­ern Al­berta to Torxen En­ergy and Sch­lum­berger for $1.3 bil­lion, its Suffield op­er­a­tions in south­ern Al­berta to In­ter­na­tional Petroleum Cor­po­ra­tion for $512 mil­lion and its Pel­i­can Lake heavy oil as­sets in north­ern Al­berta for $975 mil­lion to Cana­dian Nat­u­ral Re­sources (TSX:CNQ).

In­com­ing Cen­ovus CEO Alex Pour­baix says in a state­ment that the sale will al­low the Cal­gary com­pany to re­tire the en­tire $3.6-bil­lion bridge fa­cil­ity as­so­ci­ated with the Cono­coPhillips pur­chase be­fore yearend.

Cen­ovus has said it will iden­tify other as­sets for sale this year to take the to­tal raised to be­tween $4 bil­lion and $5 bil­lion.

In a sep­a­rate re­lease, White­cap says the pur­chase of Cen­ovus’s 62 per cent in­ter­est in the Wey­burn, Sask., project will boost its over­all pro­duc­tion in 2018 by about 25 per cent to about 74,000 bar­rels of oil equiv­a­lent per day.

The Wey­burn project has been in op­er­a­tion since 1954. Cen­ovus be­gan in­ject­ing car­bon diox­ide into its oil­pro­duc­ing un­der­ground for­ma­tions in 2000 to en­hance oil pro­duc­tion and ex­tend the life of the field.

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