Cenovus reaches agreement to sell Suffield assets for $512 million

By on September 25, 2017

Cenovus says net proceeds from the Suffield sale (Public domain)
Cenovus says net proceeds from the Suffield sale (Public domain)

CALGARY— Cenovus Energy Inc. (TSX:CVE) says it has reached an agreement to sell its Suffield crude oil and natural gas operations in southern Alberta to International Petroleum Corporation for $512 million in cash.

A release from the Calgary-based oilsands company says the sale, which includes Cenovus’ properties on Canadian Forces Base Suffield and the adjacent Alderson property, is expected to close in the fourth quarter, subject to closing conditions.

Cenovus says net proceeds from the Suffield sale, as well as those from the sale of its Greater Pelican Lake assets, will be applied to reduce the company’s $3.6 billion asset-sale bridge facility.

Cenovus announced earlier this month the sale of its Pelican Lake heavy oil operations in northern Alberta for $975 million in cash to cross-town rival Canadian Natural Resources (TSX:CNQ), with the deal expected to close by the end of September.

In late March Cenovus announced the $17.7 billion acquisition of most of the Canadian assets of Houston-based ConocoPhillips, along with a plan to raise $3 billion by issuing new shares and the marketing of its Pelican Lake and Suffield operations.