• Natural Gas News

    Oil Sands Producer Cenovus Sells Alberta Gas Assets

Summary

Proceeds to help pay for ConocoPhillips acquisitions.

by: Dale Lunan

Posted in:

Natural Gas News, Americas, Corporate, Mergers & Acquisitions, News By Country, Canada

Oil Sands Producer Cenovus Sells Alberta Gas Assets

Canadian oil sands producer Cenovus Energy said August 9 it and a subsidiary have agreed to sell their general partnership that holds Pipestone and Wembley natural gas and gas liquids assets in northwestern Alberta for C$625mn (US$477mn).

The sale, to NuVista Energy, is expected to close in 3Q 2018, Cenovus said, with proceeds directed towards paying debt taken on when Cenovus acquired oil sands and conventional oil and gas assets from ConocoPhillips last year.

The gas and liquids assets, Cenovus said, have produced an average of 8,800 barrels of oil equivalent (boe)/day this year, 55% of which is natural gas.

NuVista, in a separate announcement, said the assets include some 35,250 net acres of Montney land, mostly contiguous, holding some 157mn boe of proved plus probable reserves. Full-field development, it said, could boost production to more than 50,000 boe/day.

Also included are some 52,800 net acres of non-Montney land, currently producing about 1,600 boe/day, a 39% interest in the area’s gathering system and the Wembley gas plant.