Technology Cenovus inks deal to sell assets for $625M

03:15  10 august  2018
03:15  10 august  2018 Source:

Get Ready for Canada’s Heavy-Oil Crisis to Worsen

  Get Ready for Canada’s Heavy-Oil Crisis to Worsen Growing oil sands production from energy majors such as Imperial Oil Ltd. (TSX:IMO)(NYSE:IMO) and Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) will weigh on the price of heavy oil.Load Error

The Canadian divestment comes on top of that plan, boosting the planned asset sales for the year to more than billion. Calgary-based Cenovus will pay C.1 billion in cash and 208 million Cenovus common shares. It launched a bought- deal financing agreement to sell

The CEO of Cenovus Energy Inc. (TSX:CVE) says it is “right on target” with its asset sales plan after announcing a deal Monday to sell its Suffield oil and gas operations in southern Alberta to International Petroleum Corp. (TSX:IPCO) for 2 million in cash. Story continues below. Related.

  Cenovus inks deal to sell assets for $625M © Provided by

CALGARY - Oilsands producer Cenovus Energy Inc. is selling northwestern Alberta oil and gas assets for $625 million as part of a process to reduce its $9.5-billion debt burden.

The sale is to include its Pipestone and Wembley natural gas and liquids production, as well as its 39 per cent interest in the Wembley gas processing plant.

Cenovus didn't identify the buyer but Calgary-based NuVista Energy Ltd. confirmed it was the purchaser in a separate news release late Thursday.

Cenovus says it is continuing to market other assets in what is known as the Deep Basin region as it tries to pay down debt from its purchase of oilsands and conventional assets from ConocoPhillips last year.

NuVista says the acquired business includes production of about 9,600 barrels of oil equivalent per day and related infrastructure.

It says it will fund the purchase with its credit facilities, a $384-million offering of subscription receipts and a private placement of up to $35 million in common shares issued on a "flow-through" basis.

Companies in this article: (TSX:CVE, TSX:NVA)

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