Acquisition adds long-term value to Telephone Lake project
CALGARY, Alberta (October 2, 2012) - An agreement by
Cenovus Energy Inc. (TSX, NYSE: CVE) to purchase the
remaining assets of Oilsands Quest for $10 million received
approval from the Alberta Court of Queen's Bench today.
The majority of the assets are located adjacent to
Cenovus's proposed Telephone Lake oil sands project in
"We are pleased to acquire these assets at such a
reasonable price," said John Brannan, Cenovus
Executive Vice-President and Chief Operating Officer.
"This is a good bolt-on acquisition that has the
potential to add value to one of Cenovus's next big
emerging oil sands projects."
The acquisition includes three oil sands leases, covering
approximately 59,000 hectares in Alberta and Saskatchewan,
that 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. It does not include any of Oilsands
Quest's corporate assets or shares. The acquisition is
expected to close on or about October 12, 2012. Before
entering creditor protection (under the Companies'
Creditors Arrangement Act) last November, Oilsands Quest
was an early-stage oil sands exploration company. The
purchase and sale agreement for the company's assets
was signed with Ernst & Young, the court-appointed monitor
overseeing Oilsands Quest's liquidation.
This news release contains certain forward-looking
statements and other information (collectively
"forward-looking information") about our current
expectations, estimates and projections, made in light of
our experience and perception of historical trends.
Forward-looking information in this news release is
identified by words such as "potential" and
"expect", or similar expressions and includes
suggestions of future outcomes, including statements about
our Telephone Lake property and its potential growth
strategy and expected future production, including the
timing, stability or growth thereof. Readers are cautioned
not to place undue reliance on forward-looking information
as our actual results may differ materially from those
expressed or implied.
Developing forward-looking information involves reliance on
a number of assumptions and consideration of certain risks
and uncertainties, some of which are specific to Cenovus
and others that apply to the industry generally. For
information on the factors or assumptions on which the
forward-looking information is based and the risk factors
and uncertainties that could cause our actual results to
differ materially, see "Advisory" in our 2012
Second Quarter Report or Management's Discussion &
Analysis. For a full discussion of our material risk
factors, see "Risk Factors" in our most recent
AIF/Form 40-F, "Risk Management" in our current
MD&A and risk factors described in other documents we file
from time to time with securities regulatory authorities,
all of which are available on SEDAR at www.sedar.com, EDGAR at www.sec.gov and our website
Cenovus Energy Inc.
Cenovus Energy Inc. is a Canadian oil company. It is
committed to applying fresh, progressive thinking to safely
and responsibly unlock energy resources the world needs.
Operations include 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. The company also has 50%
ownership in two U.S. refineries. Cenovus shares trade
under the symbol CVE, and are listed on the Toronto and New
York stock exchanges. Its enterprise value is approximately