Cen­ovus sell­ing Pal­liser Block for $1.3 Bil­lion

The Drumheller Mail - - FRONT PAGE - Pa­trick Ko­lafa

Cen­ovus op­er­a­tions in the area may soon be sold for cash pro­ceeds of $1.3 Bil­lion.

The com­pany an­nounced on Oc­to­ber 19 that it has reached an agree­ment to sell its crude oil and nat­u­ral gas as­sets in the Pal­liser Block to Torxen En­ergy and Sch­lum­berger. Ac­cord­ing to a press re­lease from Cen­ovus, the pro­ceeds from the sale will be used to delever­age the com­pany’s bal­ance sheet.

“Our strat­egy to op­ti­mize our port­fo­lio by sell­ing non­core as­sets and us­ing the pro­ceeds to pay down debt is firmly on track,” said Brian Ferguson, Pres­i­dent & Chief Ex­ec­u­tive Of­fi­cer. “We con­tinue to tar­get be­tween $4 bil­lion and $5 bil­lion in an­nounced as­set sale agree­ments by the end of the year, and we re­main com­mit­ted to re­turn­ing to our long-term debt ra­tio tar­get.”

TheMail re­ported in De­cem­ber of last year that Cen­ovus was plan­ning to in­vest $160 mil­lion of growth cap­i­tal and had iden­ti­fied about 700 at­trac­tive drilling op­por­tu­ni­ties.

The Pal­liser Block sur­rounds Brooks at the south­ern end and ex­tends to­wards Drumheller at its north­ern­most point. It has a cur­rent pro­duc­tion of 54,000 Bar­rels of oil equiv­a­lent per day.

This deal comes about a month af­ter the com­pany an­nounced an agree­ment to sell its crude and nat­u­ral gas op­er­a­tions in the Suffield block to In­ter­na­tional Pe­tro­leum Cor­po­ra­tion for $512 Mil­lion.

Both deals are ex­pected to close in the fourth quar­ter of this year, sub­ject to cus­tom­ary con­di­tions.

“We con­tinue to ex­pect that the Pal­liser sale will close be­fore the end of the year,” said Brett Har­ris, man­ager ex­ter­nal com­mu­ni­ca­tions, for Cen­ovus. “Once the trans­ac­tion has closed the op­er­a­tions will trans­fer to the new own­ers.”


Cen­ovus has reached an agree­ment to sell its as­sets in the Pal­liser Block to Torxen En­ergy and Sch­lum­berger for $1.3 bil­lion.

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