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.

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