Calgary-based oil company Cenovus Energy has agreed to sell its oil and gas assets located in Suffield, Alberta to International Petroleum Corp. for a fee of C$512m.
The sale is set to include Cenovus’s properties on Canadian Forces Base Suffield and the Alderson property situated adjacent to this, expected to close in the fourth quarter of 2017.
The company will use the proceeds from both the sale of its Suffield assets and the capital gained from its Greater Pelican Lake assets, sold to Canadian Natural Resources for $975mn, to reduce it’s $3.6bn asset-sale bridge facility.
The company has announced that this is all part of its overriding strategy of being below two times net debt, accounting for adjusted earnings.
“We’re right on target with the financial plan we put in place to deleverage our balance sheet following our recent transformational acquisition of assets in Western Canada,” said Brian Ferguson, President and CEO of Cenovus.
“The successful execution of our planned divestiture program this year will further focus our asset base and should leave us well positioned to drive additional shareholder value from our core assets in the oil sands and Deep Basin.”
The news of firm’s assets sale comes just months after the company acquired ConocoPhillips’ Deep Basin conventional assets in Alberta and British Columbia, alongside its 50% stake in the FCCL partnership for a combined fee of $17.7bn.