Cenovus sells Sask. assets to Surge for $240-milli
Cenovus sells Sask. assets to Surge for $240-million
2013-06-11 16:50 ET - News Release
Mr. Bill Stait reports
CENOVUS SELLS SHAUNAVON TIGHT OIL ASSET
Cenovus Energy Inc. has entered into an agreement to sell its Shaunavon tight oil asset in Southern Saskatchewan to Surge Energy Inc. for $240-million cash consideration. The transaction has an effective date of July 1, 2013, and is expected to close by mid-July, subject to normal closing conditions.
The Shaunavon asset consists of 54 sections of land and is currently producing approximately 3,600 barrels of oil per day (as of May, 2013).
Cenovus identified its Bakken and Shaunavon assets as candidates for sale after a portfolio review, and began marketing both assets in February, 2013. The company's Bakken asset remains on the market. CIBC World Markets Inc. is acting as financial adviser to Cenovus with respect to the sale of the Shaunavon asset and continues to assist with the divestiture process related to the Bakken asset.