The oil sands & natural gas company, Cenovus Energy Inc. has reportedly planned to sell its Alberta gas & oil assets for USD 625 million. As per sources, the assets will be sold to NuVista Energy Ltd. based out of Calgary, in order to unload the company from the unwavering debt of USD 9.5 billion.
According to trusted sources, this sale will include Cenovus’ Pipestone & Wembley natural gas, liquid production along with a 39 percent stake in the Wembley gas processing plant. Reports cite that the acquired business involves 9,600 barrel of equivalents of oil every day & related infrastructure.
As per the Financial Post, Cenovus stated that it is still marketing other products in the Deep Basin area in an effort to pay back debts from the last year’s purchase of ConocoPhillips’ conventional & oil sands assets for USD 17 billion.
NuVista, the buyer has stated that the deal will be funded by the way of credit, with subscription receipts worth USD 384 million and a USD 35 million investment in common shares dispensed on “flow-through” basis.
For the uninitiated, Cenovus Energy is committed to add value by developing assets responsibly, innovatively & safely. As per sources, Cenovus’ currently operates oil sands related projects in northern Alberta, using specialized methods to drill & pump oil in the region. Seemingly, the company is also said to have 50% ownership in two U.S. refineries, cite trusted sources.
As per the company’s 2017 Corporate Responsibility Report, it has achieved its all-time lowest TRIF (total recordable injury frequency) of 0.36. It also states that donations worth USD 10 million were made to more than 1,000 local community organizations to support the youth, strengthen families & develop communities.
Cenovus trades under the name CVE and is listed in the New York & Toronto stock exchanges.