An agreement by Cenovus Energy Inc. (TSX: T.CVE, Stock Forum) to purchase the remaining assets of Oilsands Quest for $10 million received approval from the Alberta Court of Queen’s Bench Oct. 1.
According to the Cenovus Energy press release, the acquisition includes three oil sands leases, covering approximately 59,000 hectares in Alberta and Saskatchewan, which adjoin Cenovus’s Telephone Lake property.
Late last year, Cenovus submitted a joint regulatory application and environmental impact assessment for an initial 90,000 barrel per day project at Telephone Lake. Ultimately, the company expects Telephone Lake will become another cornerstone project like Foster Creek or Christina Lake, Cenovus’s two producing oil sands assets.
The acquisition also includes a 34,000 hectare oil shale lease in east-central Saskatchewan, as well as various surface assets, such as a work camp and assorted vehicles and equipment.
The acquisition is expected to close on or about Oct. 12, 2012.
Cenovus Energy is a Canadian oil company with oil sands projects in northern Alberta, which use specialized methods to drill and pump the oil to the surface, and established natural gas and oil production in Alberta and Saskatchewan.
On Tuesday, Cenovus Energy’s stock was up 2% and was trading at $35.30 a share. The company has a market cap of $26.7 million, based on 754.8 million shares outstanding. The 52-week high and low was $39.64 and $28.85 respectively.