Canadian oil sands producer Cenovus Energy Inc. and one of its subsidiaries have inked a deal to sell its oil and natural gas assets in northwestern Alberta for C$625 million in cash, according to Aug. 9 news releases.
Calgary-based NuVista Energy Ltd. will buy Cenvous's Pipestone and Wembley natural gas and liquids business and its 39% stake in the Wembley gas plant.
According to NuVista, the assets include production of about 9,600 barrels of oil equivalent per day and related infrastructure.
Cenovus will use proceeds from the sale, which is expected to close during the third quarter, to help pay down its hefty debt, with plans to sell more of its Deep Basin assets, approximately 3 million acres of natural gas-producing lands and facilities along the eastern slope of Canada's Rocky Mountains.
The company has already sold a large portion of its production to backstop debt it took on when it bought out its oil sands partner ConocoPhillips for $16.8 billion in March 2017.