This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cenovus Purchases Oilsands Quest Assets

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 northern Alberta.

“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.

ADVISORY

FORWARD-LOOKING INFORMATION

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.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,945.57 -138.23 -0.81%
S&P 500 1,979.33 -8.65 -0.44%
NASDAQ 4,450.1660 -21.9420 -0.49%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs